A businessman has sued Gulf African Bank and a courier service demanding more than Sh50 million accusing the bank of losing his title deeds, which had been deposited with the lender as security for a loan.
Hashim Mohamed Kher and his company, Al Heelam Holdings accuse the lender and Data Rush Services Ltd of losing his original title deeds in 2013.
He is further accusing the bank of levying illegal charges and penalties even after acknowledging the loss of the title.
Mr Mohamed says the bank should pay him after failing to complete a transaction for the sale of one of the parcels of land, which would have seen him dispose of the property, settle the loan and leave him with a balance of Sh6.2 million.
“The plaintiffs aver that at all material times, the defendant owed the plaintiffs a duty of care to ensure that the titles deposited with it were safe and secure, which the defendant breached by gross negligence, recklessness,” Mr Mohamed said in the petition.
The bank has denied all the allegations and is instead seeking to be paid by its former customer.
The lender says it sent the original title deeds and statement on outstanding balances that were collected for delivery by Data Rush Courier Services and were lost on the way to delivery.
Justice Josephine Mongare directed the parties to file their submissions within 14 days and appear before her on March 22.
Mr Mohamed told the court that he and his company obtained loans from the lender and presented two title deeds as security in 2010.
In 2013 he wanted to sell one of the properties to offset the loan, after allegedly getting a buyer –Welldan Contractors— who would purchase one of the properties for Sh65 million.
