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Court orders proceeds from prime property deposited in its account

PHOTO:COURTESY

A court has directed proceeds from a prime property in Nyeri town be deposited in its account.

The Lands and Environment Court ruled that proceeds including rent from business premises owned by United Social Club be deposited into its account pending the hearing and determination of a civic suit against it.

Judge Lucy Waithaka made the ruling after the court was informed that the property is registered in the name of Umplosh Company Ltd and was likely to adversely affect the other members.

The prime property valued at Sh60 million sits on a half-acre plot in Nyeri town with an annual return of Sh1.8 million.

The case was filed by Gerald Kibocha Wambugu, Daniel Gatuguta and Benson Ndung’u who are former members and officials of the club.

They have sued Erastus Kiama Gichuki, Keziah Mugure, Florence Wanjiru Marine, together with Umplosh Company Ltd and its directors.

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“One of the respondents has been collecting rent proceeds and cannot account for it,” the Plaintiff through their lawyer Muhuhu Gichimu argued.

In his affidavit, Mr Wambugu submitted that the registration of Umplosh as the proprietor of the disputed property was done on March 30, 2015.

He said it was previously registered in the name of United Members Social Club, adding that the club was governed by a constitution and its members had not sanctioned the transfer of the property to Umplosh Company.

“Registration of the company was illegal and fraudulent and was done by the respondents and our search has confirmed they are the directors,” Wambugu stated in his affidavit.

He further submitted that after registration, Mr Gichuki identified himself as the chief executive officer of the company that had been collecting rent from tenants.

In response, Gichuki denied the allegations, claiming Wambugu and his team were not members of the club. The case will proceed on May 23.

 

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