Injunction throws Sh100 million loan case open

 The pharmaceutical companies have failed to disclose all material facts on the relationship between the two parties

Guardian Bank Limited has finally obtained a temporary injunction against two pharmaceutical companies and one of the directors associated with them from transferring or dealing in any of itscurrent 21 trademarks.

The bank obtained an injunction against Sonal Holdings (K) Limited, Sonal Pharma (K) Limited and Mr Paresh Keshavji Dhodia restraining them from dealing in any means with ownership of Sonadol pharmaceutical products.

The bank, in obtaining the temporary injunction, argued that all the products mentioned are part of the debenture of Guardian Bank Limited and that the defendants were attempting to transfer the same

Sonal Holdings had earlier requested and transferred, with approval of Pharmacy and Poisons Board the referred trade marks in favour of Sonal Pharma (K) Limited without the consent of the bank.

A battle between the bank and Mr Dhodia has been going on for months resulting in a recent ruling where the court appointed Mr Clyde Atsango Mutsotso as the Receiver Manager to some of the products imported from India.

The Receiver manager is expected to sell the products valued above Sh100 million and hold the proceeds in an estrow account pending finalisation of the suit initiated by Sonal holdings (K) Limited against the bank early this year.

The bank accuses the director of the two companies of attempted fraud. But it was the pharmaceutical company directors who moved to court in April in an attempt to stop the bank from taking over its businesses.

In February before the case started, Mr Dhodia who is now among the defendants in the current suit, moved to court and obtained a conservatory order which prohibited his arrest in the event that the bank initiated such an action.

Mr Dhodia took a credit facility from the bank which he used to obtain the ten containers of drugs under dispute now. The conservatory order prohibiting the arrest of the defendant was extended on April 13, 2011 by the High Court.

Sonal Holdings Limited is a company dealing in business of importation, manufacture and distribution of over the counter pharmaceutical preparations and sanitary product. The bank has maintained that the pharmaceutical companies have failed to disclose all material facts on the relationship between the two parties.