By Nancy Akinyi
Igembe South MP Mithika Linturi has been ordered to pay his creditor more than Sh12 million.
Commercial Court Judge Muga Apondi entered the summary judgement against Mr Linturi following a successful application by the creditor — Touchstone Developers Ltd.
The judge challenged the legislator to be honourable enough and pay the said debt, which stood at Sh12,646,400 plus the cost of filing the suit. Touchstone said that the terms of agreement were that it would charge 10 per cent interest on the principal sum, in the event of default, and late payment.
The company, through advocate Steve Bundotich, argued it entered into a loan agreement with Linturi on November 29, 2007 and advanced to him Sh6 million.
The company claimed the loan had attracted interest and it stood at Sh12,646,400 as at November 2008.
Mr Bundotich argued the summary judgement should be entered against the legislator for reneging on payment.
He told the court the amount was colossal and if not paid could put his client into financial difficulties.
Touchstone contended that Linturi’s failure to honour his loan obligations was an act of wilful breach of contract.
The court heard that in consideration of the repayment, Linturi issued 21 post-dated cheques for Sh250,000 each drawn through an insurance brokerage firm associated with him — Arkchoice — to secure the loan.
The court further heard that the cheques were returned unpaid upon presentation at Southern Credit Banking Corporation.
Closed account
Touchstone claimed Linturi unilaterally closed the bank account, making it difficult for the company to re-bank the bounced cheques.
But in his defence, Linturi denied entering into any loan agreement with the plaintiff, saying he was not indebted to the company.
He wanted the suit struck out on grounds that it was brought to court in bad faith.
But Justice Apondi dismissed Linturi’s defence, arguing it did not raise any triable issue.
