This archive report was first published on 19 November 2019.
Published on November 19, 2019, two brothers who guaranteed a Sh850 million loan from Standard Chartered Bank are seeking to be joined in a suit filed by the Milling Corporation of Kenya against the lender.
Brothers Diamond Lalji and Shayid Lalji, who were directors of the Milling Corporation of Kenya, appeared before Justice Janet Mulwa to argue their application after the bank raised grounds for opposition.
The brothers claim they have a genuine stake in the proceedings and outcome and need to be enjoined in the suit as interested parties. They argue that if they are not involved in the case, they could suffer loss and damages.
The Milling Corporation of Kenya had used the property as security for a Sh2.2 billion loan taken between 2010 and 2015. The bank now wants to auction the property for a sale valuation of Sh696,539,475, which is lower than the debt owed by the corporation.
Mr. Njoroge, the lawyer representing the brothers, told Justice Mulwa that the bank would go after the brothers who were the guarantors for the remaining loan amount of Sh59,381,668.
“The outcome without the involvement of the guarantors will adversely expose them to about Sh60 million in debt,” said Njoroge.
Standard Chartered Bank claims the application by the former directors is an abuse of court process and should be dismissed. The court will give direction on the case on February 27 next year.
