High Court orders Nakumatt to vacate Likoni premises

Nakumatt supermarket has been ordered to vacate its Likoni branch premises in Mombasa within the next 60 days.

Justice Ann Omollo of the Environment and Land court further said that should the supermarket fail to leave, Nova Holding Ltd, the owners of the premises, will be at liberty to evict the retailer using lawful means.

RENT

“The defendant (Nakumatt) to clear all outstanding rent as at the date of surrender of the vacant possession or eviction of the suit premises,” said Ms Omollo.

The judge also noted that Nakumatt Holdings Ltd did not file any defence either before the application by Nova Holding Ltd was filed or at the time of hearing.

Nova Holdings Ltd, the owners of the premises had filed the application seeking to have the retailer to be ordered out of the premises located on the island side of Likoni.

However, the supermarket objected to the suit through an affidavit of its administrator Peter Kahi, saying they had experienced a severe "credit squeeze" as a result of the Banking (Amendment) Act which capped interest rates.

Mr Kahi had termed the actions of the applicants to be in breach of provisions of Section 430 of the Insolvency Act, a court order and purpose of the administration.

Nakumatt had also argued that the environment and land court lacked jurisdiction to hear the case in the circumstances of both the insolvency petition and administration order concurrently.

Two weeks ago, the supermarket got a reprieve after a court ordered its reinstatement to City Mall premises in Mombasa on condition that it pays Sh74.4 million rent arrears.

Justice Charles Yano directed Nakumatt Holdings Ltd and its managing director Atul Shah to pay the outstanding rent arrears within the next 30 days to Ideal Locations Ltd, owners of the premises, in order to be allowed back.

Justice Yano, also ordered that upon compliance with payment of the rent arrears, the supermarket will be reinstated and thereafter pay rent whenever it falls due.

“Failure by the applicants to comply with the order (of paying the outstanding rent), the respondent be at liberty to allow a new tenant to take up occupation of the premises,” said Justice Yano.