Trader loses claim in Sh180m Neno Evangelism land deal
The
appellate court rejected a businessman’s request for compensation following a
botched land purchase in Mombasa for Sh180 million, finding that he was at
fault for not fulfilling his obligation.
Yehuda
Sulami, director of Blueridge Capital Ltd, was found to be at fault by the
court for neglecting to finish paying the remaining balance of the purchase
price.
Esther
Njoroge and her brother James Mwaura were found not at fault for selling the
land in Mainland North, Mombasa to the Neno Evangelism Center for Sh180
million, according to Justices Gatembu Kairu, Mbogholi Msagha, and Pauline
Nyamweya.
After
signing a contract to buy the property in July 2013, Blueridge intended to buy
the parcel for Sh127 million and paid a deposit of Sh12.7 million. The
agreement called for a 90-day completion period.
The
Appellant also failed to fulfill its commitment to deliver the professional
undertaking to facilitate completion by the Respondents’ advocates or pay the
remaining purchase price by the completion date as required by the stated sale
agreement, the judges said.
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The
company planned to purchase the land, pay a deposit, and then, after doing a
search, discovered that it had been leased to High Time Trading Limited,
according to the evidence presented in court.
As
soon as it became clear that High Time Trading Ltd was unwilling to end
the lease, the company filed the case.
Later,
the sellers, according to Mr. Sulami, agreed to reduce the purchase price to
Sh98 million but increase the deposit to Sh45 million. He claimed to have found
a buyer later on who was ready to purchase the property for Sh180 million, with
a profit of Sh53 million expected.
The
businessman said he received a refund of his deposit money plus interest
totaling Sh13.8 million and was shocked to find later that the site had been
sold to Neno Evangelism Centre for Sh180 million.
Ms.
Njoroge confirmed terminating the sale agreement, claiming that Mr. Sulami was
at fault for breaking the terms of the deal and that all of his money was
returned with interest.