Prof Musili Wambua, University of Embu (UoEM) Chancellor, is in court to stop his alleged prosecution over issuance of postdated cheques worth Sh 20 million.
The chancellor through his law firm, Prof Musili Wambua and Company Advocates claims that Cyrus Maina and Company Advocates and a businessman Kennedy Ngumbau Mulwa wants to institute criminal proceedings against him for allegedly issuing bounced cheque of Sh10 million and the accrued interest.
The Professor says he acted as a guarantor to one of his client, Explorer Holdings International Limited who obtained a loan of sh 10 million from businessman Kennedy Ngumbau Mulwa who was being represented by Cyrus Maina and Company Advocates.
However, his client Explorer Holdings and Businessman Kennedy Mulwa met mutually and agreed that Explorer holdings would issue its own cheques amounting to sh 12.3 million to the said Businessman.
He say the agreement altered the terms of undertaking to the law firm of Cyrus Maina in respect to the mode of settlement of the debt.
He said he wrote to the law firm of Cyrus Mus informing it of the mutual understanding on the mode of settlement of the debt and thus asked it not bank cheques it had earlier issued.
However, the law firm insisted on banking the cheques which warranted him to write to his personal bank to cancel the cheques.
The chancellor claims that the law firm wrote to him confirming they had proceeded to bank the cheques but they bounced and were rejected due to insufficiency of funds.
“The Defendants are now hell bent on pursing legal action, including criminal proceeding against me on the basis of dishonored cheques yet I had informed them I had cancelled the cheques,” he said in court documents.
In response however, the law firm through lawyer Caren Mumbua claims that on March 18, 2016, Musila gave an irrevocable and unconditional undertaking to Maina to pay him Sh 20 Million being principal amount plus the commission within one month through the firm.
The law firm states that the application by professor Musili lacks merit and is an abuse of court process as it does not satisfy the legal or evidential threshold for grant of orders sought.
“Musila has deliberately distorted the facts in order to avoid consequences of his professional misconduct in criminal activities and breach of contract,” said Mumbua in court documents.
The law firms claims that Musila was allegedly supposed to pay the Sh 10 million on June 15, 2016 but he issued postdated cheques worth Sh 20Million.
Musila is further accused of giving unconditional and irrevocable personal Guarantee dated June 9, 2016 to Ngambau undertaking to pay him Sh 20 million together with the interest if nay within 30 days from the date of release.
Mumbua adds that Musila agreed that the Guarantee shall be irrevocable, remain valid and only discharged after the guaranteed amount is paid.
“Despite express terms of the professional undertaking and personal Guarantee, neither the Undertaking Amount nor the guaranteed amount has been paid to date,” said Mumbua.
She added that the professional undertaking has not been revoked, altered and or amended by parties at any time as alleged by the plaintiffs or not at all.
According to her, Musila has mislead the court that the postdated cheques issued as security for the undertaking amount were replaced and the amount paid to the defendants directly by substitute cheques.
She added that Musila has never consented with Ngumbau to amend the guarantee amount by the purported cheques issued to him as alleged or at all.