Firm suffers blow as court refuses to grant inhibitory orders against New KPCU
Woolwich Properties (K) Ltd has suffered a blow after the High Court declined to stop New Kenya Planters Co-operative Union (New KPCU) from selling, disposing or leasing a business premise in KPCU building, Nairobi.
The company had claimed in suit papers that KPCU via a lease agreement dated October 1 2015, had leased to it the office space measuring about 120,000 square feet.
However, KPCU refused to formalise the lease which was to be a period of 15 years. According to the company, the lease contemplated renovation, reconstruction and refurbishing of the premises into a commercial property comprising a modern shopping centre and a market.
Woolwich argued that the total estimated cost of the project is Sh646 million while the estimated gross income for the term of the lease is Sh372. 4 million.
“We secured a financier for the project, but owing to the ensuing uncertainty attributed to the Respondent, the financier is unable to commit further funds… the Respondent breached the agreement and committed acts of fraud against our company,” Woolwich Properties argued in court documents.
They sought orders restraining the New KPCU from selling, disposing, leasing other than to them, charging and or mortgaging, transferring or dealing with the suit property pending the hearing of the suit.
Conservatory orders
Justice John Mativo, however, declined to grant the said order, saying the application did not satisfy the tests of granting conservatory orders.
“In view of my analysis of the facts, the law and the conclusions arrived at, it is my finding that the applicant’s application does not satisfy the tests for granting the orders of injunction sought.
Accordingly, I dismiss the said application with costs to the Respondent,” ruled the Judge.
Woolwich Properties had argued that it will suffer an imminent loss and that it has a prima facie case with a probability of success.
