The High Court has declined to review an award of Sh1.6 billion given to a buyer about a decade ago following a botched deal for acquisition of some apartments at 14 Riverside property complex in Nairobi.
The amount awarded to Synergy Industrial Credit has since ballooned to Sh5.5 billion and the property developer Cape Holdings wanted the High Court to review the award and interest that was given by an arbitrator in 2015 after the botched deal.
Justice Josephine Mong'are dismissed the application saying it was another attempt by Cape Holdings to review the award when the same had been affirmed by the High Court and decisions of the Court of Appeal and the Supreme Court.
"I agree with Synergy’s submission that it is too late in the day to challenge the Award when the same has already been challenged and superior courts have rendered merit-based decisions on these challenges," said the judge.
In yet another loss for Cape Holdings, Justice Mong'are blocked the firm from interfering, transferring or dealing with several properties in Kajiado, which were developed while the case was ongoing.
"Effectively the Court grants that a prohibition order do issue prohibiting Cape Holdings whether by itself or its agents from transferring, charging or dealing with the properties," said the judge.
Through senior counsel Allen Gichuhi, Cape Holdings submitted that Synergy sought to purchase some blocks in the complex.
According to the lawyer, Synergy had an interest in “wing A” on the ground floor, first, second, third, fourth, fifth and sixth floors and on “wing B” on the ground floor, first, second, third, fourth, fifth and sixth floors of the complex.
Synergy, he said, paid Sh750 million but the parties fell out and the matter was referred to an arbitrator who directed Cape Holdings to pay the former Sh1.6 billion plus interest in 2015.
Mr Gichuhi pleaded with the court to set aside the interest of 18 percent per annum imposed and apply interest at court rates of 12 percent per annum. He also wanted caveats placed on the property removed.
He also asked the court to order for accounts to be taken on the various amounts paid on diverse dates and for the court to limit the compensation to the rule that does not allow the interest to exceed the principal amount.
Synergy, through senior counsel Ahmednasir Abdullahi, opposed the application saying the award became due once the Court of Appeal and Supreme Court issued their decisions.
"Such grounds now being raised by Cape Holdings were always available to it when it sought to set aside the Award before the Court of Appeal and ought to have been raised then," said the judge.
