JamboPay bid to halt auction of land over Sh139m loan failsMonday January 23 2023
Online payments company JamboPay has failed in its bid in court to stop Equity Bank from auctioning its land over an outstanding loan of Sh139 million.
The court also discharged and vacated temporary orders issued on February 21, 2022, which had suspended the intended sale of the suit property.
Justice Oguttu Mboya said JampoPay’s “case was not only misconceived but equally devoid of merits” since the bank had informed the company about the intended sale of the suit property as envisaged in the Land Act.
“It is my finding and holding that JampoPay and her directors were variously and duly served with the requisite statutory notices by and on behalf of Equity Bank.
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“I also find and hold that having been duly served with the requisite statutory notices, JampoPay cannot now feign ignorance and contend that same was never served with requisite notices,” said Justice Mboya when dismissing the suit filed last February.
Equity Bank told the court that at the time of filing its written submissions in court in December 2022, the outstanding amount was in the sum of Sh139,156,723.
The bank stated that the suit property was charged as security in September 2016.
“By charging the suit property to and in favour of the bank, JampoPay acknowledged that the suit property became a commodity for sale and therefore available for sale and disposal, subject to compliance with the requisite provisions of the law,” said Equity.
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The company owned by Webtribe Limited wanted the court to permanently stop the financial lender and Purple Royal Auctioneers from selling, alienating, transferring or in any other way whatsoever interfering with JampoPay’s possession and use of the suit property.
Through its representative, Danson Muchemi, the company said the intended auction was illegal because the lender failed to issue the requisite statutory notices as envisaged in the Land Act.