Watch Now
Court allows Gulf African Bank to auction property over Sh394m debt
Gulf African Bank has been allowed to auction a prime property in Nairobi belonging to a private company facing liquidation, to recover Sh394 million.
This is after the High Court lifted an injunction stopping the lender from disposing of the property in Karen despite a petition lodged by Elite Intelligent Traffic Systems Limited seeking orders for its liquidation.
In the petition urging the court to make an order for its liquidation, Elite Intelligent Systems stated that it was insolvent and was unable to pay its debts.
Apart from the property to be auctioned, Justice Josephine Mong’are offered Elite Intelligent Systems a temporary relief by suspending all proceedings, executions of judgment and decrees against the company by the unsecured creditors pending the hearing and determination of the case.
While allowing the lender to auction the property, the judge said an order staying proceedings did not apply to a bank exercising its power of sale in respect of the secured property.
The judge argued that the intention of granting a stay order was to ensure equality among the unsecured creditors in line with the objects of insolvency law that creditors ought to be treated equally.
“I am therefore inclined to stay any and all legal proceedings, actions against the Elite Intelligent Systems or executions of judgments, orders, decrees by unsecured creditors until the petition is heard and determined,” ruled Justice Mong’are.
Liquidation
Elite Intelligent Systems moved to court early this year and petitioned the court to make an order for its liquidation claiming it was facing liquidate challenges and could not pay its various debts. It urged the court to order its insolvency.
After lodging the insolvency petition, the firm sought another order blocking the forced sale of its property L.R No.1160/339 Kwarara Road, Karen estate.
The firm’s director Mr Patrick Mwangi Kibaiya said in an affidavit sworn on March 25, 2024, that the intended sale would greatly prejudice the insolvency proceedings and particularly its unsecured creditors whose interests would best be served through realising and consolidating the assets it owns as well as the debts.
According to Mr Kibaiya, the firm was willing to offer a payment plan or arrangement to the satisfaction of the creditors but stated it was currently undergoing financial challenges and lacked the capacity to pay its debts.
That if afforded reprieve, pleaded Mr Kibaiya, the firm could settle all its outstanding debts as it stood to suffer irreparably if the prayers sought in the petition were not granted.
Unsecured creditors
Mr Kibaiya informed the court that Gulf African Bank still had the option to either relinquish or maintain the security over the suit property as the insolvency proceedings continued and that the issuance of the order of injunction would not prejudice the lender.
Gulf African Bank opposed the case arguing that Elite Intelligent Systems “cannot complain on behalf of the unsecured creditors as it purports to do.”
The bank maintained that the rights of unsecured creditors were subordinate to its rights as a secured lender and that in any event, liquidation cannot stop the enforcement of a security held by a secured creditor.
The court heard that the company failed to disclose that the Karen property had been the focal point of numerous court decisions and that the rulings followed the firm’s prolonged endeavour to obstruct its right to sell the property over a span of four years.
Gulf African Bank revealed that all court decisions had unequivocally affirmed its right to sell the suit property.
The lender further informed the court that the value of the security provided had been surpassed by the accumulated and outstanding amounts, “with a genuine risk of this disparity worsening further over time.”
The bank said the outstanding debt stood at Sh393.9 million against a forced sale value of Sh146.3 million.
Shows
See AllAM Live
AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.
Business Redefined
Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.
Comedies
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Documentaries
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Entertainment
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Full Episodes
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Gumzo La Sato
Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.
Health Diary
Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.
Letter To My Younger Self
Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.
Nation Reports
Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.
One Health Lens Podcast
Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn: https://www.linkedin.com/company/onehealthlens
Paradise Lost
Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.
Primetime
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Speaking of GEN Z
Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.
Sport On
Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.
Tech-over
The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.
Thamani
Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.
The Politalk podcast
This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.
The Trend
A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.
The trend podcast
The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA
The Wicked Edition
The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience
Trending
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Twende
Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.
Unscripted
This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.
VIP Access
VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.
WADR
This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.
When death do us part
In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.
Your World
Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.