A businessman has initiated legal proceedings against his business partner and his mother, seeking a total of Sh.9.5 million in connection with an outstanding loan. The lawsuit alleges that the funds were borrowed under specific terms that have not been honored, leading to financial strain and a breach of agreement.
The businessman contends that both the partner and his mother played significant roles in the arrangement of the loan, and their failure to repay has resulted in considerable losses. This legal action underscores the complexities of financial partnerships and the potential for disputes when obligations are not met, highlighting the importance of clear agreements and accountability in business dealings.
Kelvin Gicharu Nyutu sued his business colleague David Maina Wanjohi and his mother Lucy Kanyonyo, seeking payment of Sh6 million plus interests and legal cost amounting to Sh3.5 million.
“Unless the Judgement entered and the subsequent Decree or orders granted by this Court, I will be prejudiced by inordinate delay and disregard of the Court process,” Nyutu told the court.
Nyutu said he entered into an agreement with Wanjohi and his mother for a sometimes on 17 December 2021.
The purpose of the agreement was to loan them a refundable Sh.6 million to source the initial securities required for business project funding.
By an Agreement dated 1 January, 2022, Nyutu said he advanced them a loan of Sh3.5 million on 7th January, 2021, I advanced a loan of Sh.3.5 million and further tranche of Sh.2.5 for them to facilitate and broker a business loan facility and attendant securities.
“These facts are undisputed and are well within the knowledge of the two Defendants. I have provided proof of the wire transfers. By an email dated 25th July, the Defendants acknowledged the debts and even proposed a payment plan in writing which they have failed to honour,” Nyutu told the court.
Nyutu claim is for liquidated damages for Sh. 11,015,000.00 at the date of filing the application.
He further said the orders were sought in good faith with a view to settling a long standing apparent debt, where out of Court settlement negotiations have been futile because of bad faith, deceit and dishonor by Wanjohi and his mother.
Nyutu told the court that his business colleague and mother appeared in person before Justice Stephany Bett’s and admitted the debt and promised to come up with a plan to settle the amount.
He said the two are abusing the Court process with inordinate delays in a ‘fast track’ claim, moreover the Judge granted them a find an opportunity to enter appearance within 14 days of 6th February, 2023 and they have not complied with to date.
He told the court the two have no arguable nor merited defence, having admitted the debt.
Nyutu said he served with the court papers and sent them an email as well as WhatsApp.
He added that he sent the a message ahead of the virtual hearing and shared the online link and assisted them to log on for the case mention on 6th February, 2023.
