Sam Kiplagat

5 August 2010

Nairobi — A judge on Thursday stopped the sale of Wakulima House -- the property of Kenya Planters Cooperative Union (KPCU) -- after frantic efforts by its lawyers.

The move, however, was met with fury from the Kenya Commercial Bank (KCB), since another judge had rejected a similar application three days ago.

In a short ruling, Mr Justice Leonard Njagi stopped Friday's planned sale, directing that the matter should await the judge who had been hearing it.

Judges are currently on August vacation and only one stays behind to handle urgent matters.

Last week, Justice Njagi had adjourned the case on learning that a similar application for stopping the auction had been filed before Justice Roselyn Wendoh and a ruling was pending.

In her ruling, Lady Justice Wendoh dismissed the application, accusing KPCU of filing parallel suits before different judges.

She termed the move an abuse of the court process and rejected an application by the union to disqualify herself from the case.

KCB was, therefore, surprised when Mr Justice Njagi allowed the same application.

In moving to court, the union argued that KCB and the Coffee Board of Kenya were frustrating hearing of the case.

The organisation further said that the sale was illegal and without any justification, adding that the receiver managers had not accounted for their presence since being appointed.

The bank, through lawyer Kamau Karori, however, told the court that KPCU had filed parallel proceedings in different courts over the same subject matter.

KCB wanted to exercise its statutory power of sale and dispose of Wakulima House to settle its debt.

The giant union was placed under receivership in October last year over a debt of Sh644 million.