Mombasa trader sues landlord for Sh1 billion after 48 cars are auctioned

A businessman is seeking more than Sh1 billion in compensation after a landlord auctioned his cars.

Rehan Raiz Malik, the director of Al-Riaz International Ltd, has accused Ganjoni Properties Ltd of auctioning his 48 cars valued at Sh 131.9 million over rent arrears.

He says the landlord, together with Makuri Auctioneers Ltd, who are the second respondent, forcefully evicted him from the premises.

Mr Malik, who has rent arrears running into millions of shillings, has sued the landlord and the auctioneers for compensation due to the loss of the motor vehicles and income.

He wants them to pay him the income he would have earned over the next five years.

Through lawyer D Ngoze, Malik told Justice PJ Otieno that the auctioneers evicted him despite a High Court order retraining his removal pending determination of a case he had filed.

“I have lost Sh131,900,000 for the 48 motor vehicles that were sold by the landlord, and Sh14,965,000 for fittings and other items,” said Malik.

He said he had lost income at a rate of Sh8 million per month from January 7 to date.

“Pursuant to the illegal eviction, the plaintiff has lost income and his business. He has suffered extensive losses and damages payable by the landlord and the auctioneers jointly and severally,” Mr Ngoze said in an affidavit.

The lawyer said the rental arrears owed to the landlord amounted to Sh14,900,000.

“On January 7, the landlord and the auctioneer evicted the plaintiff, who lost his entire livelihood,” said Ngoze.

He said the High Court had allowed his client back on the premises and the Central Police Station OCS ordered to provide him with security.

Ngoze said the auctioneers and the landlord proceeded to illegally advertise the sale of the 48 vehicles in January.

The cars were reportedly auctioned on January 20 at the National Social Security Fund grounds in Mombasa. The venue for the auction was not the one they had advertised.

“The plaintiff contends the illegal eviction has caused him to suffer substantial, irreversible loss, injury and damages.”

Al-Riaz International sued Ganjoni Properties Ltd on December 31, 2014, seeking orders to stop his eviction from the premises.

But Ganjoni, through lawyer Kinyua Muyaa, said the Court of Appeal could not hear a matter that was in the High Court.

“This suit is bound to birth conflicting orders since there are similar matters before other judges,” said Mr Kinyua.