The Former Nakumatt CEO Atul Shah has lost his Lavington home to Leakey Auctioneers over a Ksh. 2 billion debt owed to a regional bank.
This comes after the High Court dismissed Atul's petition to overrule the sale of his property. Justice Francis Tuiyott said that the petition did not stand a chance.
“This court is not persuaded that the suit, as currently presented, demonstrates a prima facie case with a probability of success. Being unable to surmount that hurdle, it is needless for this court to discuss other aspects raised in the application,” the judge ruled.
Mr. Atul had placed the property as supplementary security as Nakumatt's guarantor to save it against bank loans.
The home is the second asset the businessman has lost to auctioneers this year alone.
In the beginning of the year, High Court Judge Alfred Mabeya directed a local bank to auction his prime property at the Industrial Area, Nairobi. The property worth Ksh. 2 billion was sold for Ksh. 1.04 billion to recover a loan that the bank had advanced to the businessman.
Through his company, Collogne Investments Mr. Atul had acquired loans to the tune of billions in an attempt to save the chain of Nakummat supermarket from the financial crisis it had.