Blow to Chinese firm as it loses 10 housing units to Equity Bank
A Chinese construction company has been ordered to hand over ten housing units at Fourways Junction Kiambu to Equity Bank Limited to settle the owners’ of the project unpaid loan.
Muga Developers Limited took various loans from Equity ten years ago and appointed Suraya Property Group Limited as its agent to sell the housing units to prospective purchasers.
China Wu-Yi Company Limited, which constructed the housing units located at Hibiscus Villas and Tulip Apartments. has been holding on the ten units as it claims a debt of Sh73 million from the project owner Muga and Suraya.
Justice David Majanja ordered the Chinese firm to hand over the units since it is a financial facility which the bank granted the developers and has not been fully repaid.
“Contractor does not have proprietary interest in the suit property that would defeat the Bank’s securities. It is my considered opinion, any person who lays claim to the ownership of any housing units which are on the property charged to the bank, should strive to ensure that the bank loan was paid of,” ruled Justice Majanja.
According Equity, the contractor does not have any claim over the houses thus the continued possession was unlawful.
Earlier, the court found that the contractor had no claim over the houses.
