Home BUSINESS NCBA Bank To Auction Mombasa Firm Over Ksh.236 Million Debt

NCBA Bank To Auction Mombasa Firm Over Ksh.236 Million Debt

NCBA Bank To Auction Mombasa Firm Over Ksh.236 Million Debt

NCBA Bank seeks to action prominent transport and logistics company, Mombasa-based Shiva Carriers Ltd, Jagged Alliance Ltd and directors Deepak Madan and Raveej Deepak an over a KSh. 246 million debt.

This after the company failed to appear or file a defense in its petition seeking to repossess the property. The action is to be done by the NCBA Bank Group.

NCBA Bank Group also wants Spring Bank Investment Ltd, a firm owned by the directors, compelled to pay Sh. 50 million and interest at commercial rates, this can be seen in an article by a local daily, the Business Daily.

Moreover, in addition to the undertakings, the bank said in court papers that Jagged Alliance Ltd as a related company to Shiva Carriers Ltd gave a guarantee and undertaking of Sh. 263 million. NCBA Bank also told the court that Spring bank also offered its parcel of land as security for the loan  in the year 2011 and 2015

NCBA Bank says that “it had advanced Shiva Carriers Ltd various loans in March 2009, September 2012, August 2014, April 2015, and November 2017.  As directors and shareholders of Shiva, Mr. Madan, and Mr. Deepak acted as guarantors of the loans, giving three separate guarantees on diverse dates.”

Already NCBA Bank has repossessed trucks and trailers it financed. As this happened, the company filed a care at the High Court in Mombasa in 2017 to block the repossession and any auctioning or its property. The firm then withdrew the petition through a notice dated October 3, 2019.

However, even after withdrawing the petition in a notice dated October 3, 2019, the company continued to default according to what NCBA Bank told the Court.

NCBA Bank told the court, “Since the withdrawal of the suit, Shiva Carriers Ltd has continued to default in repaying the banking facilities as contracted or at all.”

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings