Statutory demand of Sh 33M issued to Dar Iman ltd by Clasico builders ltd

Milimani Law Courts, Nairobi.

Clasico builders (K) Ltd has issued a statutory demand of over Sh 33.4 million from Dar Iman Limited after its directors failed to pay the money which was awarded to them.

Dar Iman Ltd lost an application seeking to suspend the execution of the award published by the arbitration tribunal that directed them to pay Clasico Sh 27,845,670 together with interest rate of 14% p.a until payment is made in full.

Justice David Majanja dismissed Dar Iman’s application challenging the said award and allowed the final award published in February 2021.

“The Final Award published by Christopher K. Kihara and dated 15th January 2021 together with the post-award clarifications and corrections dated  16th February 2021 be and is hereby recognized as binding and leave is granted to the Respondent to enforce it as a decree of this court,” judge Majanja ruled.

Clasico builders Ltd and Dar Iman Ltd had in November 2012 entered in an agreement and conditions of contract for building works, the joint building counsel, 99 edition (JBC) and addendum to agreement and condition of building contract.

Dar Iman contracted Clasico to construct six residential houses and ancillary external works at Lower Kabete on Land Reference No. 8527/9, Farasi Lane.

According to the agreement, the project was to cost Sh 185,061,574 and was to take a period of 41 weeks with the date of practical completion being 1st August 2013.

The respondent was expected to issue monthly completion certificates.

The dispute arose when Clasico claimed that despite having worked, finalized and handed over the Project, Dar Iman refused or neglected to pay the project architect’s Final Account Certificate of Sh 16,103,520 plus interest of 10,708,840 due as at 30th July 2020.

The JBC provided that disputes were to be heard and determined by way of arbitration and the reference to arbitration was determined by Christopher K. Kihara as the sole arbitrator.

After hearing the parties’ arguments to the dispute, the Arbitrator ordered Dar Iman to pay Clasico Sh 27,845,670 together with interest at the rate of 14% pa until payment in full.

The arbitrator also dismissed Dar Iman’s counterclaim.