[2005] KEHC 1205 (KLR)
The court found that the applicant, as chargee, had complied with the terms of the charge and debenture, including issuing demand notices and placing the respondent under receivership. The charge expressly permitted sale by private treaty. The applicant had received an offer for the property at a price substantially...
Source-derived case information.
- Citation
- [2005] KEHC 1205 (KLR)
- Parties
- Plaintiff: Industrial Development Bank Ltd.; Defendant: Greenland Dairy Ltd (In Receivership)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 546 of 2005
- Procedural Posture
- Miscellaneous Application / Ruling on Chamber Summons for Leave to Sell Charged Property
- Outcome
- Application granted.
- Legal Topics
- Enforcement of Security, Private Treaty Sale, Receivership, Loan Default, Debenture Enforcement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Industrial Development Bank Ltd.
Plaintiff
Greenland Dairy Ltd (In Receivership)
Defendant
Procedural Posture
Miscellaneous Application / Ruling on Chamber Summons for Leave to Sell Charged Property
Legal Issues
- 1 Whether the applicant is entitled to leave to sell the charged property by private treaty under the terms of the charge and debenture.
- 2 Whether the applicant followed the requisite procedures for enforcement of security.
Ratio Decidendi
The court found that the applicant, as chargee, had complied with the terms of the charge and debenture, including issuing demand notices and placing the respondent under receivership. The charge expressly permitted sale by private treaty. The applicant had received an offer for the property at a price substantially higher than the forced sale value, demonstrating commercial reasonableness. As the respondent did not contest the application, and all procedural requirements were met, the court granted leave to sell the charged property by private treaty as sought by the applicant.
Court Disposition
Application granted.
Orders
- Industrial Development Bank Limited is granted leave to sell by private treaty Title Number NEW LARI TRADING CENTRE/78.
- The applicants are granted costs of the application dated 29.6.2005.
Full Case Text
Judgment text and source record
16 paragraphs
IN THE HIGH COURT OF KENYA AT NAIROBI COMMERCIAL DIVISION, MILIMANI Misc Application 546 of 2005
INDUSTRIAL DEVELOPMENT BANK LTD. ……………………...PLAINTIFF VERSUS GREENLAND DAIRY LTD (In Receivership) ….………………...DEFENDANT RULING
The plaintiff/applicant seek the following orders in their Chamber Summons dated 29th June 2005;
(1) That the applicant be granted leave by this Honourable court to sell by Private Treaty Title No. NEW LARI TRADING CENTRE/78.
The respondents were served but did not appear.
The applicants granted the respondent a loan which the respondent utilized to buy a diary factory.
That loan was secured by a debenture and a charge over the suit property. On the respondent defaulting in paying that loan the applicant sent the requisite demand notices and also placed the respondent under receivership.
The said receiver is in the process of selling the movable assets of the respondent charged to the applicant. That the applicant wishes to sell the charged property which is valued for Kshs.13,548,000/= under forced sale.
The applicants have received an offer to by private treaty for Kshs.30,500,000/=.
Having examined the applicants charge particularly Clause 5 and 6, I am satisfied that the applicants can sell the charged property by private treaty.
I therefore find that the applicants are entitled to prayers sought. I therefore grant the following orders:-
(1) That INDUSTRIAL DEVELOPMENT BANK LIMITED is hereby granted leave to sell by private treaty Title Number NEW LARI TRADING CENTRE/78.
(2) That the applicants are granted costs of the application dated 29. 6.2005.
Dated and Delivered this 12th October 2005.
MARY KASANGO
JUDGE