McCauley Wycliff
Member
A businessman has been jailed for six months for failing to pay 11.9 million to a motor company in a land dispute.
Johnson Kigundu was committed to 180 days civil jail after he failed to obey a decree that ordered him to pay the said monies to A-Plus Motors Limited.
A-Plus Motors Limited through the company’s Managing Director James Mwangi Muturi sued Kigundu at the Environment and Lands court after he was defrauded of Sh5.3 million in a land row deal.
In court documents, Muturi claimed that on or about 16 November 2016 they entered into a sale agreement with Kigundu for the purchase of a property situated in Thome Nairobi County.
The purchase price of the aforementioned property was to be 34 million and being the purchaser, he paid 10 per cent deposit which was 3.4 million while the rest of the money was to be financed by Spire Bank.
Kigundu however requested for an additional deposit of the purchase price which he paid, totaling to 5.3 million.
However, Spire Bank while conducting due diligence so as to confirm that Gikundu was properly registered as the proprietor of the property realized that he was dilly-dallying in providing the essential documents for the property.
The bank had requested Gikundu to avail the previous transfer in his favour from the person who allegedly sold him the property and stamp duty payment receipt for transfer in his favour.
“The defendant (Gikundu) delayed in forwarding the said documents which led to the bank’s director to hold a meeting with him, in the said meeting, he made a startling admission that he had not paid stamp duty on the transfer in his favour and that was the reason why he could not avail the documents that were requested,” claimed Muturi in court
A-plus company claimed that it had in its possession recordings of conversations where Gikundu admitted that he did not have the necessary documents to prove ownership of the property nor a good title and that he would refund the said money which he failed to do.
“The defendant, however, became evasive and could not be reached after that… He failed, neglected or refused to avail the said documents which led to the transaction failing to materialize as his purported registration as the owner of the property came into serious doubt,” claimed Muturi.
Gikundu did not file any response to the suit and the Environment and Lands Court entered a Judgement in favor of A-plus motors limited for sum of 8.7 million plus interests and costs.
The court directed that he should pay a sum of sh 5.3 million plus interest from the date of payment to the date of full reimbursement.
He was also ordered to pay 3.4 million being the 10 per cent damages payable for breach of contract, legal fees expenses of sh 620,600 and valuation fees of sh 80,000.
He failed to pay the monies which led to court to issue a warrant of committal against him for 180 days