Imperial Bank shareholders sue lender for rent

Business Daily Kenya: 

Imperial Bank. Photo/KENNA CLAUDE

A company associated with Imperial Bank shareholders has sued the lender (under receivership) over accrued rent arrears of Sh84 million.

The company, Upper V iew Properties, has laid blame on the receiver of the bank, Kenya Deposit Insurance Corporation (KDIC), for failure to remit the rent in addition to its refusal to return the building’s records.

Through lawyer Andrew Wandabwa, the company seeks an order directing the bank to pay the rent arrears in addition to also be evicted through the land in Mombasa County measuring 0.59 acres. the idea argues in which after the bank was put under receivership, KDIC took possession of the suit property in addition to has continued to be in possession to date.

Wandabwa said KDIC has refused to return ETR machines, accounts in addition to tax records, thus some other tenants cannot pay rent. The property was used to take a loan through KCB to recapitalise the bank, claim the owners.

“Despite being in occupation of the disputed property, Imperial Bank has refused to pay the rent under the terms of lease,” said Upper View inside the suit.

According to the court documents, the lease agreement between Imperial Bank in addition to Upper View was signed on May 28, 2010 for lease of 31,162 square feet.

The lease expired on June 30, 2015 in addition to upon the lender being put under receivership, KDIC has refused to pay the accrued rent. “The bank has refused to execute the lease forwarded to the idea, thus becoming a trespasser, in addition to the company will be entitled to profits in respect of the bank’s continued unlawful occupation of the premises,” argues the plaintiff.

Wandabwa said the bank has refused to execute the tendered lease or pay the rents due alleging in which the idea will be the beneficial owner of the subject property on the basis in which Upper View acquired the suit premises through dividends declared by the directors of the bank when the shareholders knew, or ought to have known, in which the bank was not earning any profits.

nevertheless the lawyer said the assertion by the bank will be presumptuous, false, misconceived in addition to made with the ulterior purpose of grabbing the property through Upper View.

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Imperial Bank shareholders sue lender for rent

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