The Supreme Court has declined to hear a long-running battle between National Bank and a ranching company in Taita Taveta County over a Sh2.8 billion land that was sold to recover a loan of 1992.
The apex court led by Deputy Chief Justice Philomena Mwilu dismissed the application by Mwambeja Ranching Company Ltd, saying the issues raised by the company were not substantial questions of law, whose determination would have significant bearing on public interest.
The Sh30 million loan was borrowed by Project Advisory Ltd in July 1992 and Mwambeja Ranching Company was the guarantor and charged its land in Taita Taveta as security.
After failing to repay the loan even after agreeing that the amount be settled in instalments, it sold the property to Shimbaland Ranching Company Limited in 2012 for Sh305 million.
Attempts by the company to overturn the sale were dismissed by the High Court and Court of Appeal, forcing Mwambeja to go to the Supreme Court.
“The motion lacks merit as the applicant has not satisfactorily highlighted any issues the determination of which would transcend the circumstances of the matter at hand so as to justify a review of the Court of Appeal’s ruling denying certification,” the top court said.
Senior counsel Allen Gichuhi who represented Mwambeja Ranching argued that the appeal raises questions of general public importance as there are conflicts in law on whether a principle in law that bars banks from charging more interest than the principal amount applies retrospectively.
