Ty­coon wins first round in Sh727m tus­sle with DTB

Tan­raaj Dhanjal says the bank has not com­plied with the Bank­ing (Amend­ment) Act 2016, ef­fected on Septem­ber 14, in charg­ing its credit fa­cil­ity

The Star (Kenya) - - News Business - MAU­REEN MUDI @mau­reen­mudi

A road con­struc­tion firm has won the first round of Sh727 mil­lion legal bat­tle with Di­a­mond Trust Bank over a Sh465 mil­lion over­draft ad­vanced in De­cem­ber last year.

Tan­raaj Singh Dhanjal, a di­rec­tor in the Mom­basa-based firm, Dhanjal Broth­ers Ltd, has stopped Kenya’s sev­enth largest lender from auc­tion­ing his as­sets to re­cover the amount in dis­pute.

The com­pany says DTB has not com­plied with the Bank­ing (Amend­ment) Act 2016, ef­fected on Septem­ber 14, in charg­ing the credit fa­cil­ity.

In court doc­u­ments filed in the High Court in Mom­basa, through his lawyer Fran­cis Kadima, Dhanjal ar­gues the bank is­sued a no­tice and an ad­ver­tise­ment on Au­gust 3 to sell by pub­lic auc­tion his as­sets, in­clud­ing parcels of land in Mom­basa and Kwale coun­ties.

This arose af­ter a dis­pute be­tween the firm and the bank over an over­draft fa­cil­ity of Sh465mil­lion it took in De­cem­ber 28, 2015, to fi­nance its projects.

“The de­fen­dant agreed to dis­count in­voices up to 70 per cent whereby it could is­sue bank guar­an­tees to projects ten­dered and granted in favour of the plain­tiff,” Dhanjal says.

Jus­tice Peter Otieno was on Fri­day in­formed that the bank had in­structed auc­tion­eers to put on sale the real es­tate prop­er­ties of­fered as in­terim se­cu­rity.

Kadima ar­gued the bank should rec­tify the loan ac­count to re­flect the true amount owed, and a per­ma­nent in­junc­tion is­sued re­strain­ing the bank from fur­ther levy­ing in­ter­est.

“It is un­for­tu­nate that the bank plans to auc­tion my client’s as­sets at a time when he has been hos­pi­talised at a Lon­don fa­cil­ity,” Kadima said. The judge cer­ti­fied the mat­ter as ur­gent and set an in­ter­par­ties hear­ing date for Thurs­day next week.

The firm had signed a con­tract with the Kenya Na­tional High­ways Au­thor­ity for road­works val­ued at Sh564,381,531. The amount is yet to be paid.


Di­a­mond Trust Bank along Moi Av­enue

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