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Man in over Sh14 million bank debt wants Mombasa court to declare him bankrupt

NEWS
By Joackim Bwana | Jul 10th 2019 | 2 min read
By Joackim Bwana | July 10th 2019
NEWS

A man who says he cannot pay a debt he owes a bank wants the Mombasa High Court to declare him bankrupt.

Ayubkhan Rasulkhan Walimohamed yesterday told Lady Justice Dorah Chepkwony that he cannot pay Sh14 million to Prime Bank because he has no money or assets.

Ayubkhan, who is a hardware sales manager in Nairobi, said he earns a monthly salary of Sh60,000, adding that the money is barely enough to take care of his two children, wife and mother.

“I hereby petition the court that a bankruptcy order be made in respect of my estate and that I may be declared bankrupt,” said Ayubkhan.

He also denied owing money to the bank, instead saying the Sh14 million was a loan borrowed by Relish Tea Parkers Limited where he was a director.

Ayubkhan said he was living in his wife’s house that had been gifted to them by her parents.

He also stated that his insolvency was not caused by living extravagantly or gambling.

Company director

Prime Bank lawyer Sanjeev Kagram said that on April 24, 2015 the bank filed a suit against Ayubkhan, who was the company director, for Sh6,946,231 together with applicable interest.

Mr Kagram said the High Court in Nairobi issued a decree against Ayubkhan, Relish Tea Parkers Ltd and Rose Ann Wawuda to pay Sh14,010,103.

“The debtor (Ayubkhan) failed to file his defence within the stipulated time and judgment was entered in favour of the bank,” the lawyer said.

Kagram said the statement of Ayubkhan’s financials was “heavily deficient and non-compliant with the provisions of Section 32 of the Insolvency Act”. The lawyer accused Ayubkhan of lying to the court and abusing the process of bankruptcy to avoid paying his debt.

“You are a man that cannot be trusted because you are being untruthful in your statement of affairs. You also failed to provide the court with your Kenya Revenue Authority PIN. Had you provided the PIN, the bank would have known your assets,” said Kagram.

During cross-examination, Ayubkhan said he had borrowed Sh2 million from the bank to put into the business, and that the Sh14 million was the sum of accrued interest.

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