Court stops sale of Triton Gas assets

A plan by creditors to sell properties owned by Triton Gas to settle Sh2 billion debt suffered a blow on Tuesday after the High Court stopped it.

Triton Gas Stations and Triton Service Stations asked the court to stop the planned sale arguing that they own the properties targeted, and are not parties to the claim raised by lenders; Kenya Commercial Bank and PTA Bank.

The pair had already disposed of four of the properties before the order was granted.

Triton Gas and Service Stations are the registered owners of the properties.

They said the properties were held as security by two banks to lend money to a company known as Triton Petroleum Company, yet the firm is only a 0.1 per cent shareholder in Triton Gas and Service Stations.

High Court Judge Eric Ogola said: “It is not necessary to allow sale of properties to third parties when there are lingering questions on the validity of such a move.”

Triton Gas Stations and Triton Service Stations argument in seeking to stop the sale was that the deed of settlement was signed by Mr Yagnesh Mohanlal Devani, Mr Sunil Ramnikal Somaia and Mr Mahendra Pathak.

“A bank considering to lend a staggering sum of $25,372,456.83 cannot, in the faintest of situations ignore such a requirement. The court has not established that indeed the said deed of settlement was not valid, this is a process that is ongoing,” Judge Ogola said.

They produced letters showing Mr Ramnikal resigned from the board of both Triton Gas Stations and Triton Service Stations.

It is also stated that Mr Pathak has neither been a director of any of those firms.