The High Court has suspended a Sh700 million bankruptcy order against Cyrus Jirongo.
Justice Olga Sewe also stopped businessman Sammy Kogo from executing a decree against Jirongo, pending the hearing of a commercial dispute between the two parties.
Kogo, through his eight companies, petitioned the court to issue bankruptcy orders against Jirongo.
The order was granted on September 29.
But Jirongo told the court he was not served with the petition that led to the judgement.
He said he was not aware of the proceedings against him.
Jirongo had secured a loan from National Bank of Kenya using properties belonging to Kogo, but he failed to repay the loan.
According to court papers, Jirongo was to settle his debt within 180 days.
Subsequently the bank moved in and auctioned the property held as security.
Jirongo entered into an agreement to pay Sh700 million, the value of the property.
He failed to honour the agreement within the stipulated period, causing the appropriator of the suit property to institute court proceedings.
The property was held in the names of Masole, Bain Enterprises, Gileta, Koit Developers, Saman Developers, Kenete Enterprises and Linsala Enterprise Ltd.
During the hearing, Jirongo failed to make an appearance or file a statement of defence and the judgment was made in favour of Kogo.
The former Lugari MP has also been sued by Cotu boss Francis Atwoli for failing to pay back Sh110 million.
Jirongo had in October last year made an undertaking that he would pay the money which Atwoli had lent him.
Atwoli says Jirongo has failed to pay him and wants the court to compel the former MP to do so.
Kogo has 14 days to file a response to Jirongo's suit.
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