- The four investors held a majority stake at Guilders and decided to sell it off
- They had sold 200,000 shares held at Guilders International Bank but defendants failed to honour the sell agreement.
Directors of Guardian Bank alongside five other local affiliated companies have moved to the Court of Appeal to challenge a High Court ruling in Sh196 million buyout dispute with Guilders International Bank.
High Court on Friday last week ruled that Guardian Bank alongside Conifers Trading Limited, Chandaria Holdings, Dima Limited, Goldera Holdings Limited and Kevis Investment Limited pay Sh196 million plus interest to Shival Investment Limited, Naval Holdings Limited, Ketty Investments and Saaf Holdings Limited in a suit that has lasted years.
The court also ordered Guardian bank to pay interest that has accrued from 2001 when the agreement was signed and release all securities held to the then chairman of guilders International bank Raju Sangani.
The four investors held a majority stake at Guilders and decided to sell it off before a dispute arose with directors of Guardian Bank.
“Defendants herein being dissatisfied with the judgement and decree of the High Court(Commercial and Tax Division) (Hon. Justice A. Mabeya) delivered virtually via Microsoft Teams Meeting on February 17, 2023, intends to appeal to the Court of Appeal against the whole judgement and Decree,” reads part of the filed notice.
Justice Mabeya had ordered the bank and its directors to pay the four companies the disputed amount, discharge and return of securities, and settlement of the cost of the suit.
The four applicants had indicated that they sold 200,000 shares held at Guilders International Bank but the defendants failed to honour the sell agreement.
However, Guardian Bank and its directors argued that the directors of GIB failed to honour the memorandum of agreement and the investors fid not disclose GIB true value when they were selling.