Panna Dilip Chaurhan v Bank of Africa Kenya Limited & Garam Investments Auctioneers [2018] KEELC 350 (KLR)

Facts

The plaintiff, Panna Dilip Chaurhan, questions the process of realizing security (a charge on properties) by the chargee, Bank of Africa Kenya Limited and Garam Investments Auctioneers. The subject matter is an overdraft facility of approximately Kshs.540,000,000.

Issues

1. Whether the plaintiff has satisfied the overdraft facility.
2. Whether the chargee has followed the right procedure of exercising statutory power of sale.

Reasoning

The Court of Appeal in Co-operative Bank of Kenya Vs Patrick Kangethe Njuguna & 5 Others (2017) eKLR held that a charge does not constitute use of land within the meaning of Article 162(2) (b) of the Constitution of Kenya 2010. The question is not the validity of the charge but whether the money has been paid and whether the right procedure of statutory power of sale is being followed.

Outcome

The case is transferred to the High Court of Kenya at Eldoret.

Authorities cited