Case against Tatu City halted
The High Court has temporarily stopped winding-up proceedings against the multi-billion-shilling Tatu City project awaiting the outcome of an appeal by two shareholders.
This came as the company’s lawyer on Friday warned that the prolonged delay of the case could see shareholders pulling out.
Commercial Division judge Jonathan Havelock granted the injunction to the proceedings until the appeal by shareholders Rosemary Wanja and Stephen Mwagiru is heard and determined.
The two shareholders are seeking the disqualification of a law firm from acting for the company.
The judge ruled that a decision of the Court of Appeal “will have a profound effect on some if not all of the currently outstanding applications, 12 in all.”
The appeal was lodged after the High Court rejected their application to stop Oraro and Company Advocates from representing the company.
The Court of Appeal is yet to fix a date to hear the appeal. (READ: Tussle threatens to stall another multi-billion shilling investment)
After Friday’s injunction, Tatu City lawyer George Oraro said that the continued dragging of the court cases could drive the investors away.
He said the investors could pull out if cases continue delaying it.
He told the judge that the project was based on borrowing which had been postponed many times because of prolonged court proceedings.
The winding-up case, Mr Oraro stated, should be treated with urgency because the creditors might take off.
A bench to hear the matter will have to be reconstituted after Mr Justice Emmanuel O’Kubasu disqualified himself from the matter.
On Friday, Mr Oraro, whose firm is the subject of the appeal, asked for a date to return to court and proceed with the winding-up case whether the appeal will have been heard or not.
Justice Havelock directed the parties to return before him on December 5. The proposed Tatu City project will result in a Sh200 billion modern residential city in Kiambu County,
