Sema Health Products Limited v Housing Finance Corporation & another (Civil Appeal (Application) E492 of 2023) [2024] KECA 245 (KLR) (8 March 2024) (Ruling)

Facts

Sema Health Products Limited obtained a Kshs 65,000,000 credit facility from Housing Finance Corporation. The applicant defaulted in servicing the credit facility, leading to the 1st respondent seeking to exercise its statutory power of sale. The High Court stayed the sale on condition that the applicant deposited Kshs 5,000,000 into a joint interest earning account. The applicant failed to deposit the money, and the 1st respondent proceeded to conduct the sale by public auction.

Issues

1. Whether the applicant’s intended appeal is arguable.
2. Whether the sale of the suit property by public auction was reversible and if damages would reasonably compensate the applicant.

Reasoning

The Court finds the application unmeritorious due to the applicant's failure to comply with the court's orders and the clear law that a mortgagor's equity of redemption is extinguished at the fall of the hammer, leaving the only remedy as an action for damages.

Outcome

Dismissed

Authorities cited