A businessman’s quest to be compensated following a botched land deal worth Sh180 million in Mombasa has been dismissed by the appellate court stating that he was to blame for failing to complete his part of the bargain.
The court ruled that Yehuda Sulami, director of Blueridge Capital Ltd was to blame for failing to complete paying the balance of the purchase price.
Justices Gatembu Kairu, Mbogholi Msagha, and Pauline Nyamweya held that Esther Njoroge and her brother James Mwaura cannot be faulted for selling the land in Mainland North, Mombasa to Neno Evangelism Centre for Sh180 million.
Blueridge wanted to acquire the parcel for Sh127 million and paid a deposit of Sh12.7 million after entering an agreement to purchase the property in July 2013. The deal was to be completed within 90 days.
“In addition, it is also notable that it is not in dispute that the Appellant had also not fulfilled its obligation to provide the professional undertaking to facilitate completion by the Respondents’ advocates, or pay the balance purchase price by the completion date as required by the said sale agreement,” the judges said.
Evidence tabled in court stated that the company wanted to buy the land and paid the deposit and after undertaking a search, discovered that it had been leased to High Time Trading Limited.
The company joined a case filed by High Time Trading Ltd, after indications that it was not willing to terminate the lease.
Mr Sulami said the sellers later agreed to reduce the purchase price to Sh98 million but increased the deposit to Sh45 million. He said he later identified a potential buyer who was willing to pay Sh180 million for the property as he expected to make a profit of Sh53 million.
The businessman said he was shocked to learn later that the land had been sold to Neno Evangelism Centre for Sh180 million and was handed a refund of his deposit money plus interest amounting to Sh13.8 million.
Ms Njoroge confirmed terminating the sale agreement arguing that it was Mr Sulami who did not honour the agreement and that all the money he had paid was refunded with interest.
