Banks in Sh2bn Triton case seek new orders
Customers wait to be served at the Kenya Commercial Bank (KCB) on June 3, 2014. KCB has a strong headroom to finance big projects across East Africa on the back of high capital and liquidity buffers, Global Credit Ratings has said. PHOTO | SALATON NJAU |
What you need to know:
- The banks argue that by the said Deed of Settlement, Triton Gas Stations (TGS) and Triton Service Stations (TSS) assigned all the petrol stations to them, prior to execution of the Deed of Settlement, by a firm TPCL.
- However, TGS and TSS, who are claiming ownership of the petrol stations the banks intend to sell to recover the money, have said they are strangers to the $25,372,456.83 claim, given that they don’t recognise the Deed of Settlement.
Two banks seeking to recover Sh2 billion loan advanced to Triton Petroleum Company (TPCL) five years ago want all cases on the matter to be consolidated so that they can be heard and determined once and for all.
Kenya Commercial Bank (KCB) and Eastern & Southern African Trade and Development Bank (PTA) said most of the orders obtained in different courts in Kenya are conflicting due to massive concealment and misrepresentation of facts.
“Conflicting orders could result in serious miscarriage of justice, not just to the parties in the suit, but to parties in other suits mentioned in this application,” the banks said in the court papers.
The banks want the application they filed at the High Court last week to be placed before the presiding judge of the High Court.
They say it raises substantial constitutional and legal issues of great public interest, which should be referred to the Chief Justice to set up a three-judge bench to hear and determine the case.
DEED VALIDITY
At the centre of the dispute is the validity of the Deed of Settlement made on March 9, 2009.
The banks argue that by the said Deed of Settlement, Triton Gas Stations (TGS) and Triton Service Stations (TSS) assigned all the petrol stations to them, prior to execution of the Deed of Settlement, by a firm TPCL.
The amount the banks want is $25,372,456.63. (about Sh2 billion).
However, TGS and TSS, who are claiming ownership of the petrol stations the banks intend to sell to recover the money, have said they are strangers to the $25,372,456.83 claim, given that they don’t recognise the Deed of Settlement.
They said they did not have any board resolutions authorising the execution of the Deed of Settlement, commitment to its terms and performance of its terms, which involved pledging their assets as security.
They say they didn’t benefit from, or receive any funds from, the deal between TPLC and the banks and that the banks want to burden them with the debt of another entity, namely, TPLC.
SELLING STOPPED
On October 21, the High Court in Nairobi stopped KCB and PTA from selling the disputed petrol stations until the validity of the contested Deed of Settlement is determined.
In their application seeking consolidation of the cases, the banks said the October 21 court order contradicts those made on August 17, 2012, in Mombasa, and could end up being in conflict with a determination in another case pending before the High Court in Kisumu.
“There is an obvious contradiction in the positions that TGS and TSS have taken on the Deed of Settlement, which has in turn resulted in conflicting decisions by the courts over the same matter,” the banks said.
In an affidavit sworn on behalf of TGS in 2009, the banks said, it was stated that they had, together with other firms associated with runaway businessman Yagnesh Devani, entered into the Deed of Settlement and that the companies, including TGS and TSS, were making efforts to comply with the said Deed.
