English Point Marina has been seized for the second time by KCB Group after a court lifted a July ban that had prevented the bank from taking the property due to an Sh5.2 billion debt.
The Court of Appeal has frozen high court orders by Justice Dora Chepkwony that prevented KCB Group’s appointed receiver-manager, Kamal Anatroy Bhatt, from taking over English Point Marina without explaining the reason.
The Mombasa luxury property was seized by KCB Group in June, sparking a court battle with the owners that resulted in the Bank being kicked out a month later.
KCB has now returned to the property until the appeal against the high court ruling is heard and decided, setting the stage for a lengthy legal battle and multiple suits on the property.
“We hereby give our decision granting the notice of motion dated 22nd July 2022 and issue an order staying the Ruling and Orders of the Honourable Lady Justice Dorah Chepkwony delivered on 12th July 2022, and stay any further proceedings in High Court Commercial Court, Case No. E201 of 2022, Pearl Beach Hotel Limited vs KCB Limited & Kamal Anantory Bhatt, pending the hearing and determination of the applicants’ appeal,” the three-Judgech ruled.
Amin Kanji, his wife Leila, brother Alnoor, sister-in-law Nafisa, and Nazir Jinnah are the owners of English Point Marina. The luxury property is located near the harbor and includes 96 apartments, eight penthouses, and a 26-room hotel.
According to court documents, KCB agreed to make loans to the firm between 2011 and 2018.
The company has been servicing the loan and has benefited from a moratorium that will expire in June 2020. The company has already paid Sh3.3 billion.
KCB took over English Point Marina after the bank attempted several times to restructure the loan but the owners were still unable to meet the payments.
They appointed Kamal Bhatt as receiver-manager, expecting to sell part or all of the property to raise enough funds to settle the amounts owed to KCB.
The owners, on the other hand, rushed to court to stop KCB Group, claiming there was no justification for Mr Bhatt’s appointment because the parties were in negotiations.
Mr Nick Ndeda, a real estate lawyer, also asked the court to grant the firm’s directors unrestricted access to Penthouses D1 and D2, where they live permanently.
The firm also sought an injunction prohibiting KCB from selling or subdividing any of the property or any part of the building or development, as well as its assets, pending the outcome of the application.
The English Point Marina is one of the high-value properties that lenders have taken over after their developers defaulted.
They include Nairobi’s DusitD2, which is currently being claimed by I&M Bank, with other creditors attempting to seize control of the property complex.
