CONTENTIOUS SH300 MILLION LOAN

Mombasa court suspends sale of tycoon's transport company

The businessman popularly known as TSS died in 2017, leaving his business empire in shambles

In Summary

• The judge ordered the bank to furnish the applicants with documents consenting to the borrowing of the loan. 

• The ruling came as relief for the family currently battling numerous claims of failure to repay loans allegedly taken by the businessman.

Gavel.
JUSTICE: Gavel.
Image: FILE

The High Court in Mombasa has temporarily suspended the sale of some properties belonging to late business mogul Tahir Sheikh Said which were allegedly used to secure a Sh300 million loan.

Judge Dora Chepkowny restrained the Imperial Bank from instructing auctioneers to either advertise, lease, sell by public auctioning, or interfere in any way with the property pending the determination of the matter. 

The judge further ordered the bank to furnish the applicants with documents consenting to the borrowing of the loan. 

 
 

She further directed that applicants, who include the man's children and wife, to be supplied with the list of guarantors during the borrowing. 

Chepkowny noted that Imperial Bank had previously escaped supplying the required documents with claims that its systems had not been updated since the bank was under receivership. 

She, however, gave the bank 30 days to supply them since the court believed the systems had already been updated.  

The ruling came as relief for the family currently battling numerous claims of failure to repay loans allegedly taken by the businessman.

In this case, TSS’s wife Isha Tahir - alongside their children Osman Tahir, Amina Tahir and Said Tahir - has sued the bank.

The family said their father neither took nor approved the loan and that it was taken by undisclosed third parties through negligence, fraud and forgery on the part of the bank. 

The family said they were made aware of the loan by their brother-in-law after the death of their father. 

 
 

Their efforts to inquire about details of the loan were futile as the bank remained mum.

The family said they were, however, shocked when the bank slapped them with a 40-day notice purporting to have intentions of selling the land where the company sits. 

They further said signatures used in acquiring the loan were forged and therefore, investigations on the forgery should be launched. 

But the bank maintains that the loan was legally acquired and one of the applicants (Amina) sat on the board that chose to use TSS transport company as a security.

The bank further said Isha and Osman were actually among people who signed as guarantees in the repayment of the loan. 

Imperial Bank said they issued the sale notice after the borrower failed to service the loan for months which resulted in more than Sh500 million after interest. 

Edited by R.Wamochie