The High Court has stopped the planned auction of a property at Nairobi’s iconic 14 Riverside Drive complex after ruling that the auction process was defective and invalid.
Justice Moses Ado ruled in favour of Cape Holdings, setting aside the warrants and auction notices that had paved the way for the sale of the property.
The judge also dismissed an objection by Synergy Industrial Credit Limited challenging the court’s jurisdiction and ordered allegations made by Synergy against the court to be expunged from the record.
The ruling means that any attempt to sell the property through an auction will have to begin afresh and comply with the court’s directions, including having the reserve price determined by the court.
The case stems from a long-running commercial dispute between Synergy and Cape Holdings over a 2010 property transaction linked to the Riverside development.
At the centre of the dispute is a deposit of approximately Sh577 million paid towards the purchase of an office block within the complex.
The transaction later collapsed, with Synergy seeking a refund and arguing that delays in the development had frustrated the deal.
Cape Holdings disputed the claims, maintaining that some of the delays were caused by design changes requested by the buyer.
The disagreement eventually escalated into court proceedings, culminating in efforts to realise the property through an auction.
Cape Holdings challenged the process, arguing that the proposed sale had not been conducted lawfully.
In his ruling, Justice Ado found merit in the challenge and declared the auction process defective and invalid, consequently setting aside the warrants and auction notices.
The decision offers temporary relief to Cape Holdings but does not resolve the underlying commercial dispute between the two parties.
Any future attempt to auction the property will now have to follow a fresh process and comply with the court’s directions, including the requirement that the reserve price be fixed by the court.
