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Economy

Mombasa landlord demands Sh74m from Nakumatt

Nakumatt
A closed Nakumatt outlet. FILE PHOTO | NMG 

A former landlord of retail chain Nakumatt Holdings has moved to court to have the financially troubled supermarket and its managing director Atul Shah compelled to pay accrued City Mall rent.

Mombasa-based Ideal Locations wants the court to order Mr Shah to pay Sh74.4 in outstanding rent, accrued interest and profits up to the time of eviction from the premises.

Through lawyer Willis Oluga, Ideal Locations says the fact that Mr Shah has lodged an appeal at the Supreme Court does not shield him from paying the money as previously ordered by court.

Mr Shah, through his lawyer Mutiso Ngonze however told the court that there is an application pending for stay of execution of the proceedings.

“The decree is still the subject of challenge at the Supreme Court,” said Mr Ngonze, adding that the petition has been admitted before the Supreme Court.

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Last December the supermarket suffered a setback after its appeal to have an order issued directing it to vacate its former premises at City Mall in Mombasa set aside was dismissed.

The Court of Appeal ruled that it was in agreement with an Environment and Land Court (ELC) Judge that the dispute between Nakumatt and its former landlord was a matter under the jurisdiction of the environment court.

Appellate judges Daniel Musinga, Gatembu Kairu and Agnes Murgor further ruled that considering that the application for an administration order had been dismissed by the High Court on November 16, 2017, the environment court judge cannot be faulted for proceeding with the case before him.

“As at the time the ELC suit was filed, the provisions of Section 560 of the Insolvency Act were not applicable,” said the judges. The Appellate Court noted that Nakumatt had pointed out that on January 22, 2018, an administration order was granted by the High Court but it was also the date the case before the ELC was concluded.

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