Mentor Sacco Society Limited is set to auction a Ksh300 million property in Nairobi’s Ngara area belonging to Mugoiri Development Company Limited.
This is after Commercial and Tax Division Court Judge Justice David Majanja, on August 24, issued the ruling in a dispute where the Company had filed a suit seeking to block the Sacco from carrying out the auction.
The proprietors claimed that they had been misled into entering into a business loan agreement as opposed to a joint venture agreement with the institution.
In the suit, the Murang’a-based group argued that it had negotiated a joint venture agreement with Mentor Sacco for the development of a five-storey commercial and residential building with a basement to be set up on the contested property in 2016.
The Sacco had agreed to invest Ksh114.2 million in the project, funds which would be recouped through rent paid by the prospective tenants into the Mugoiri firm’s account held by the Sacco.
However, Mentor Sacco refuted the venture agreement claim, stating that the property owners had in 2016 applied for and obtained a loan to develop the land, after presenting minutes of meetings held by its members and directors.
In his judgment, Justice Majanja found that the Murang’a group had not produced any evidence of entering into a joint venture agreement with the Sacco, noting that the only documentation produced was a letter of offer that clearly showed that the group intended to be a loan seeker.
“The plaintiff’s application dated April 13, 2023, is dismissed with costs to the defendants. The interim orders in force are now discharged,” ruled Justice Majanja.
Mugoiri Development Company Limited is a limited liability firm incorporated in 1976 by a group of now-elderly residents from Mugoiri Location in Murang’a County.
By Thuita Jaswant
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