Two businessmen sue partners for failing to share Sh 500 million revenue

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Milimani Law Courts.

Two directors of Akrama Apartments Limited want the court to declare two of their partners breached their joint venture agreement by failing to split Sh 500 million revenue held in a secret bank account.

Bashir Gabow and Mohamed Abdi want the court to order Dahir Ahmed and Mohamed Ibrahim to share the money held in their secret dollar and shilling bank accounts at Absa Bank on a 40:60 basis as per the revenue share agreement dated 31st  January 2020.

Gabow and Abdi are the directors of Akrama Apartments Ltd and the original registered owners of the parcel of land situated within Eastleigh, in Nairobi.

The businessmen also want the court to issue an injunction restraining Gulf African Bank by themselves, their agents, servants, employees or anybody from advancing any loan or leasing the original title to the respondents; Dahir Ahmed, Mohamed Ibrahim, Abdullahi Wahile and Ellys Cargo Services Limited,  pending hearing and determination of the application.

They further want the respondents ordered to produce in court the entire statement of accounts, contractual documents, bank charge instrument, clearing and forwarding documents relating to the containers from China since January 2020 and statement of accounts from Absa Bank transacted through Abdullahi Wahile’s dollar and shilling account.

In addition, the applicants want the court to order that the two cease to be directors of Akrama Apartments ltd.

“Unless the court grants orders sought, they will suffer loss and damage since their business partners are likely to apply for more loans from Gulf African Bank or release of the original title to them which will subject them to a huge loss and damage.

The Agreement

Gabow and Abdi entered into a joint venture agreement dated 12th September 2018 with Ibrahim and Wahile. 

According to court documents, the two were to inject capital in the construction of the apartments after paying Sh 47,432,566 to Gulf African Bank to discharge the title from the latter after which Dahir and Ibrahim were admitted as directors of Akrama Apartments ltd.

Subsequently, the parties entered into a revenue share agreement dated 31st January 2020 where it was agreed that parties borrow Sh 20 million from Gulf African Bank and the same was disbursed.

The said money was to be invested in a stock business of clearing and forwarding using a Elleys Cargo Limited and the profits generated be divided on a 40:60 percent basis for them and the business partners respectively. 

Gabow and Abdi accuse Dahir, Ibrahim and Wahile of secretly and without their knowledge incorporating Elleys Cargo Services Limited and injecting the said Sh 20 million in its favour and has been transacting with the company since 2020 to date to their exclusion.

They further claim that their business partners have been clearing and forwarding over 1000 containers since January 2020 to date and they confirmed Dahir and Ibrahim generate an average of Sh 500,000 from  each container.

“The 1st, 2nd and 3rd respondents have generated over Sh 500 million to date using their secret bank accounts at Absa Bank,” Gabow and Abdi told the court.