alexa High Court dismisses bid to stop Linturi from running firm - Daily Nation

High Court dismisses bid to stop Linturi from running firm

Wednesday June 26 2019

Mithika Linturi.

Meru Senator Mithika Linturi. The High Court has dismissed an application against him filed by a company linked to his estranged wife Marianne Kitany. PHOTO | FILE | NATION MEDIA GROUP 

SAM KIPLAGAT
By SAM KIPLAGAT
More by this Author

The High Court has dismissed an application against Meru Senator Mithika Linturi filed by a company linked to his estranged wife Marianne Kitany.

Barons Estate Ltd, whose director is Ms Kitany’s son Collins Kipchumba, moved to court in 2018, accusing Mr Linturi of running Atticon Ltd, in which he has shares, single-handedly, to the detriment of the other directors and shareholders.

He accused Mr Linturi of taking overdrafts from Family Bank without their consent, and allotting shares to other parties without the authority of the board of directors.

In its application, Barons sought to have the court restrain Mr Linturi and Atticon from dealing with the company’s shares negatively, pending the determination of the matter.

BOOST LIQUIDITY

Mr Kipchumba told the court that sometime in August 2015, they were approached by an emissary to boost Atticon’s liquidity, and that Barons guaranteed a 12-month overdraft.

Advertisement

Thereafter, Barons charged its property to the bank.

He said the agreement was that Atticon would take a Sh50 million loan.

OVERDRAFTS

But since then, Atticon had allegedly taken a total of Sh335 million in overdrafts, bank guarantees and trade facilities without Barons’ input, putting its Sh465 million property at the risk of being sold to recover the money.

In reply, Mr Linturi said he has never defaulted on the loan repayment.

He added that when Barons guaranteed the overdraft in 2015, he agreed to give Mr Kipchumba some shares through Barons.

He acknowledged that he secured a Sh262.5 million loan but that he did not intend to sell Atticon.

“My finding is that the plaintiff did not establish that the guarantee was limited to Sh50 million as alleged,” Justice Wilfrida Okwany said in her ruling.

Barons, she said, provided no proof that the respondents engaged in fraudulent transactions.

Advertisement