The High Court has intervened in a debt dispute, issuing orders to halt Equity Bank from proceeding with the sale of a parcel of land located in Eastleigh.
High Court Judge Peter Mulwa ruled that the notice given by the bank, allowing for the sale of the land, was defective as it was based on a previously rectified default notice.
The court granted an interim injunction, preventing Equity Bank from advertising, selling, leasing, or otherwise disposing of the Eastleigh property until the bank issues fresh notifications of sale in accordance with the Land Act.
The case was brought before the court by Peter Karanja Muiru, who sought to temporarily restrain Equity Bank from taking any action on the property until the case was resolved.
Karanja explained that he had obtained a loan from the bank, securing it with the land in question. Despite regular payments, he fell behind on some installments due to various reasons, including the impact of the Covid-19 pandemic.
Equity Bank issued Karanja a notice claiming arrears, but Karanja argued that the notice was defective and that he had made payments in good faith. However, the bank proceeded to issue a 40-day notice to sell the property.
Justice Mulwa found that the bank’s actions did not comply with legal requirements, emphasizing that Karanja would suffer irreparable losses if the sale proceeded unlawfully.
