Counties

Soho nightclub loses bid to halt auction in Sh27m rent dispute

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Summary

  • A court has declined a request by a top nightclub in Nairobi to stop its landlord from auctioning its properties over an outstanding rent of Sh27 million.
  • Soho’s Bar & Restaurant along Maua Close, Westlands, wanted the court to stop the landlord, Gurbash Singh Kenya Limited, from proceeding with a planned auction of its moveable properties.
  • It also sought the court to issue orders for the release and returning of the attached assets.

A court has declined a request by a top nightclub in Nairobi to stop its landlord from auctioning its properties over an outstanding rent of Sh27 million.

Soho’s Bar & Restaurant along Maua Close, Westlands, wanted the court to stop the landlord, Gurbash Singh Kenya Limited, from proceeding with a planned auction of its moveable properties.

It also sought the court to issue orders for the release and returning of the attached assets.

But Justice David Majanja ruled that the landlord is entitled to recover the rent.

He said if there is any irregularity in the distress, the club has recourse in a suit for damages.

“The club owes rent and the landlord was entitled to exercise its statutory right of distress,” said the judge, citing section 15 of the Distress for Rent Act.

Kenya Shield Auctioneers had attached the club’s assets and advertised them for sale.

Anaheim Investments Limited, which owns the club, wanted Sh27,553,345 arbitrator Phylis Wangwe awarded the landlord on July 27, 2021, over the rent dispute set aside.

The dispute between the tenant and the landlord was based on the lease agreement dated October 2, 2018.