A commercial court has barred China Road and Bridge Corporation (CRBC) subsidiary in Kenya from closing shop in a battle lodged by a Kenyan firm it subcontracted to upgrade slums roads.
Justice Josephine Mongare in her orders directed that CRBC Kenya should not sell, lease or move its equipment from Kenya until the application filed by Tuk Chilo Limited is heard and determined.
“An order is issued restraining the respondents either by their agents or servants and or any other person acting on their behalf from selling, leasing or moving their equipment from the jurisdiction of the court pending the hearing and determination of this application,” she ruled.
A Tuk Chilo Limited in its case filed before the commercial court claims that CRBC has illegally withheld its Sh44 million following a deal to upgrade roads in informal settlements within Nairobi.
In its case, the firm states that the Chinese government owned firm is in the process of winding up its operations in Kenya, and relocating to China.
It wants the court to bar CRBC directors from leaving the country until the dispute is settled.
In its case, Tuk Chilo claims that it was subcontracted by CRBC Kenya to build roads in Kenya’s slums.
According to its case before Justice Alfred Mabeya, it borrowed money to carry out the project and completed it.
“The plaintiff avers that upon execution of the contract, they diligently performed their part of the contractual obligation and handed over completed projects to the satisfaction of the Defendant whereby the Plaintiff was issued with a certificate of completion (the protocol of final account for completed projects) dated 28th February 2022 which we acknowledged on 15th March 2022,” its lawyer Kennedy Otieno argues.
According to Tuk Chilo, the roads construction company has allegedly declined to honor its end of the bargain.
In effect, Tuk Chilo laments that its operations are at risk of being grounded for lack of funds.
The judge heard that auctioneers are on Tuk Chilo’s neck, seeking to recoup the money owed from lenders.
“The applicant has held several meetings with the respondent deliberating on the aforesaid outstanding payments but the Respondent has exhibited laxity in settling the same,” states Otieno.
“Applicant outsourced finances to perform its obligation in respect of the contract dated July 12, 2021, and is now under pressure by the financiers who threaten to auction the Applicant's property as a result of the respondent's failure to pay them.”
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Court documents indicate that CRBC Kenya subcontracted Tuk Chilo to upgrade roads in Mukuru, Kangemi, Kawangware and Korogocho slums.