PAUL Kimani Wamatangi’s lawyer John Ogada secured an interim stay of execution against the J/D pending the hearing of determination of an appeal the politician has lodged against Co-Op bank.
A Commercial court gave Wamatangi the reprieve pending a determination on claims the bank wants to force him to over-arch on payments on a closed account.
Judgement had been passed against the Senator on May 31 2017 to pay Co-Op bank Ksh 11, 626,762.46 which now accrued…and auctioneers given the green light to attach his property to recover the debt.
Immediate Auctioneers got the nod to attach movable property of the said Judgement-Debtor but to the tune of Ksh12,158,091.
Usage of the card
His lawyer has lodged an appeal at the high court against the judgement by the magistrate’s court.
“The interest charged by the plaintiff was illegal and in breach of Section 44 of the Banking Act…” court documents read against a backdrop of the case.
Wamatangi, through hs lawyer,says the 8 per cent interest awarded by court was also illegal.
Further, he claims the matter was heard and determined in his absence and never had an opportunity to present his evidence on May 31 2017. He pegs his challenge against the judgement saying ” the court noted that the condition of the card use was that there was 5 per cent whilst the card was being used, but the court has not considered that it was wrong for the defendant(Co-op bank) to continue charging the 5 per cent interest from the time when they stooped usage of the card or when the card ceased to be used; therefore the court erred in awarding the 8 per cent interest as prayed in the plaint.
The card agreement having been terminated by stoppage of the use of the card and filing suit,the plaintiff was no longer entitled to the 3 per cent late payment, Wamatangi says.
Break-down of communication
According to Wamatangi the bank breached the law in the matter it dealt with his account ” as it continued the charge interest even after the account had become “nonperforming” and the interest had exceeded the principal sum.
He has also taken a stab against the authority of the trial court in purporting to issue the decree and states:I have sought and received advice from J.Ogada Advocate,the lawyer now instructed in this matter , which advice I believe to be true,that pecuniary jurisdiction of the senior resident magistrates does not exceed Ksh 10,000,000 and therefore the matter and awards given in this case are outside the jurisdiction of the honourable court.
The politician cries out and explains his absence in preceding sessions leading up to the judgement and decree, saying his non attendance was because”I never knew the hearing dates and this may have been a breakdown of communication between my then advocates and I and the case proceeded to hearing and judgement.
“I have now been served with an application for execution dated June 52018 asking the court to issue a notice of show cause and in the application of execution the principal amount stated is Ksh 11,626,726.46 and the interest is shown as Ksh 528,529.49 making a total dectral sum to be Khs12,155,255.95,” he cries out further.