Former Jack n’ Jill proprietor Schon Ahmed Noorani is seeking Sh 167 million from businessman Rajendra Ratilal Sanghani whom he lend as unsecured loans.
According to the court documents, Noorani advanced unsecured loans to Rajendra amounting to Sh 477,100,000 between 1st August 2012 and 26th April 2018.
The proprietor claims he was issued with postdated cheques as collateral in payment for the outstanding loan owed to him.
He terms Rajendra as a multi-millionaire who lives lavishly and is known to be a hopeless spendthrift adding that has displayed a dishonest character and inclination for deception as is evident by his representatives to KRA, through filing NIL returns.
“The Debtor has presented to me on various occasions that he is capable of making the monthly installments as clearly demonstrated by the draft Acknowledgment of Debt he sent to me on 30th April, 2016,” he added.
In his defense, Rajendra who runs several business ventures said he has made payments in installments defraying the principal sum and an interest of 1.5per month amounting to Sh 448,738,864.
”The loans advanced to me were utilized in running the businesses, I have always paid all installments on time and never been in arrears,” said Rajendra.
He said that he does not deny the debt but he is not in a position to pay the amount as it stands but is willing to pay it in installments over a period of time.
He added that due to accumulated loan balances and the rising interest rate imposed on him by the creditor, he still owes a balance of Sh 167,270,500 which is inclusive of interest until 1st December, 2021.
Rajendra was seeking for the stay of the orders issued by the court where Noorani said his application is an abuse of court process.
He claims that due to unreasonable interest rates imposed to him by the creditor, it is becoming increasingly difficult for me to make the monthly payments.
He wants the court to issue stay order against Noorani to prevent him from presenting to the bank all the postdated cheques for payment arguing that his estate and business will suffer irreparable loss and damages which will be detrimental to him and the creditor and reduce chances of recovery for the loan amounts owed.
Justice Francis Tuiyot will give directions on 6th July when the matter will be mentioned.