The Supreme Court has agreed to hear a dispute between a firm affiliated to Goldenberg architect Kamlesh Pattni and the Central Bank of Kenya (CBK) over a multi-million shilling claim related to the sale of the Laico Regency Hotel.
A five-judge panel led by Deputy Chief Justice Philomena Mwilu agreed with Westmont Holdings that its case is of public significance, despite the fact that the company was required to pay Sh20 million before proceeding with its claim against the CBK.
Lynwood Development Limited, based in Malaysia, employed its local agent, Westmont Holdings, to pay the CBK Sh185.5 million in April 1997 as a 10% deposit and interest on the purchase of the Grand Regency Hotel.
After the hotel was sold to Libya Arab Investment Company (Laico) and renamed Laico Regency, Westmont filed a lawsuit seeking repayment of the Sh185.5 million plus interest.
The company claims the CBK defrauded them of Sh185 million during the bungled sale of the Grand Regency hotel, which is now known as the Laico Regency.
The CBK has strongly contested Lynwood’s allegation, claiming that Westmont’s Mr. Pattni paid the money to pay off a loan he owed the regulator, laying the ground for a legal battle that might leave taxpayers with yet another large cost to pay.
