The High Court has declined to order a bank to release Sh485 million held by a law firm on behalf of a construction company despite a claim that the company owes $5 million (Sh645 million by current exchange rates) plus interest.
Multiple ICD (Kenya) had sought an interim order against UBA Kenya Bank that the money being held in deposit by Ahmednasir Abdullahi Advocates LLP to the credit of Zakhem International Construction under a court order in another case be attached. Multiple ICD runs an inland container depot in Mombasa.
The firm had also sought to have the court issue an interim order compelling Equity Bank, Ahmednasir Abdullahi Advocates LLP, and UBA Kenya Bank to produce in court, statements of bank accounts that hold the funds for the benefit of Zakhem International Construction Ltd.
Justice Moses Ado, on Tuesday, said he was unable to issue any orders considering the position taken by the parties. In its application, Multiple ICD (Kenya) says that on August 18, 2020, the court entered a consent judgment in its favour against the construction firm for $3.2 million (Sh412.8 million).
Through lawyer Emmanuel Walubengo, the company says that since judgment was entered, the entire decretal amount, which has accrued interest, remains unpaid.
Multiple ICD (Kenya) Ltd says it learnt that the judgment debtor (Zakhem International Construction) obtained a decree for Sh485 million in another case.
“The court ordered Equity Bank to transfer the money in the judgment debtor’s advocate Ahmednasir Abdullahi Advocates LLP account held at UBA Kenya Bank Ltd,” the application states in part.
Zakhem International Construction says that Multiple ICD (Kenya) has failed to demonstrate that there is a debt due from Equity Bank, Ahmednasir Abdullahi Advocates LLP, and UBA Kenya Bank to the judgement debtor capable of being attached.
Justice Ado directed the case to be mentioned on July 23.
The company further argues in its application that pursuant to the orders, it is evident that Equity Bank or Ahmednasir Abdullahi Advocates LLP is holding funds in favour of the construction company.
According to Multiple ICD (Kenya), it wishes to obtain orders to attach the funds held at Equity Bank or by the law firm’s account at UBA Kenya Bank in favour of the construction company.
“The judgment debtor/respondent can at any moment dispose of and transfer the money awarded,” part of the application states.
Multiple ICD (Kenya) also argues that it is imperative that the court attach funds held by Equity Bank, the law firm, and UBA Kenya bank in favour of the judgement debtor to assist it in realising the fruits of its judgment.
Zakhem International Construction has termed the application by Multiple ICD (Kenya) an abuse of the court process and without merit as the prayers sought are untenable for issuance.
The company says that it does not maintain any accounts with Equity Bank, Ahmednassir Abdullahi Advocates LLP, and UBA Kenya Bank Ltd for it to warrant garnishment of the accounts.
“Given that the first, second, and third garnishees do not hold any account or funds on behalf of the judgment debtor, this court cannot compel them to render the accounts as sought,” the construction company says in its grounds of opposition.
