Pinewood Beach Resort Moves To Court of Appeal To Challenge Links To English Point Marina Case » Capital News
NAIROBI, Kenya, May 6 – The legal tussle pitting Itco Investments Limited (ITCO) and the Kenya Commercial Bank (KCB) has been escalated to the Court of Appeal over the control of Pinewood Beach Resort and Spa.
ITCO wants an injunction issued against KCB, its receiver manager Kamal Anantroy Bhatt or any other person acting on their behalf against taking over or selling the Kwale Based hotel.
This comes after a High Court ruling that ITCO has termed as erroneous on the grounds that it was based on different legal suits that they are not party to.
In the Appeal filed under the Certificate of Urgency, Itco Investments Limited through their lawyer Conrad Maloba argues that High Court Judge Justice Peter Mulwa made a mistake, “by finding in the impugned ruling that the High Court and Court of Appeal proceedings in Mombasa are directly in issue with the issues in the present suit HCCOMM/E57E/2023.”
In the Application, the lawyer says the applicant (ITCO) did not participate and is not party to the Mombasa case HCC No. E063 of 2023.
In the Appeal, ITCO further says it is not the proprietor of Pinewood Beach Resort and Spa, but only an operator of the asset.
KCB through its receiver manager is after the luxurious Kwale based hotel over a loan dispute amounting to Sh5.8 billion.
In the Application however, ITCO says Pinewood Beach Resort and Spa is not an asset under the Debenture.
The Court heard that the debenture seeks to unjustly curtail its operation and growth without first realizing the principal security or exploring all possible avenues of recovering its money.
The loan was obtained by Pearl Beach Hotels Limited (PBHL), trading as English Point Marina, to develop the English Point Marina in Mombasa.
KCB had told the High Court that the loan was secured by among others debentures issued by the principal debtor as well as an all-asset debenture dated September 12, 2012, issued by ITCO to secure an aggregate principal of Sh225 million.
ITCO Director Alnoor Kanji has since opposed the appointment of the receiver manager on the grounds that Pinewood Beach Resort and Spa and any other securities made were supplemental to the primary security- the English Point Marina Mombasa.
Kanji, in the affidavit, has equally said that the Spa is not part of the assets under the debenture.
When reached for a comment, Kanji pointed out that the value of English Point Marina is more than the principal amount borrowed.
English Point Marina is currently valued at Sh8 billion.
“There is no need for the bank to go for other property yet the matter is still in court. It is also good to note that English Point Marina is worth more than the principal amount borrowed,” Kanji added.
KCB has over the years been involved in similar legal suits with businesses and investors.
In previous cases, KCB has faced criticism for its aggressive approach to loan recovery, often leading to protracted legal battles.
This pattern has raised concerns about the bank’s practices and its handling of debtors, with some accusing KCB of heavy-handed tactics.
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