Home » Equity Bank to Auction Wida Highway Motel Due to Multi-Million-Dollar Debt

Equity Bank to Auction Wida Highway Motel Due to Multi-Million-Dollar Debt

by Samantha
0 comment

In a recent legal development, Equity Bank has been granted the legal right to auction the prominent Wida Highway Motel located in Kiambu, following a High Court ruling.

The decision, delivered by Justice Nixon Sifuna, came after the court dismissed an application by the motel seeking to halt the auction.

The motel, owned by a group of investors, had initially moved to court in an attempt to restrain Equity Bank from selling the property.

The hotel’s claim was rooted in the assertion that they were making efforts to repay the loan of Sh89 million borrowed from the bank in 2015.

However, Justice Sifuna emphasized that these claims needed substantiation and that mere verbal assertions were insufficient.

He stated, “courts will not rush to the aid of a chargor or mortgagor who alleges repayments without providing proof thereof by way of receipts, payments slips or bank deposit slips.”

The court’s decision centered on the lack of tangible evidence demonstrating the motel’s efforts to meet its financial obligations.

Despite the hotel’s claims of ongoing negotiations with partners to assume the loan, the absence of concrete proof compelled the court to rule in favor of Equity Bank.

The judge also highlighted that the concept of equity of redemption did not absolve the motel from their financial responsibilities, emphasizing the importance of adhering to payment schedules outlined in mortgage agreements.

Additionally, the court dismissed the motel’s argument that the intended auction value of Sh200 million significantly undervalued the property. Justice Sifuna maintained that if irregularities were found in the auction process, the motel could seek compensation through legal avenues.

You may also like

About Us

Follow us

Recent Articles

@2023 – All Right Reserved. Designed and Developed by Kenyan Report ICT