Barely 24 hours after government sold shares in Malawi Savings Bank (MSB), the Supreme Court of Appeal in Blantyre on Friday dismissed an application by Mulli Brothers Limited (MBL) restraining the bank from selling the company’s property worth K3.3 billion.
The bank has over the past months been pressing MBL to repay loans that have soared to K3.2 billion forcing it to flight advertisements for the sale of some properties belonging to the company in a bid to recover its money.
Lawyer representing MBL, Chauncy Gondwe, confirmed that a judgement delivered by a three-man panel of judges discharged an order for stay of execution of an earlier ruling by a lower court.
Supreme Court Justices
Maxon Mbendera, Frank Kapanda and Dunistan Mwaungulu presided over the case.
“Indeed the panel today vacated the order that we had earlier obtained stopping the bank (MSB) from executing the judgement that was delivered by the lower court. Two of the judges were of the view that the order for stay should be vacated against one who wanted the status quo to be maintained,” said Gondwe.
Lawyer for Malawi Savings Bank, Alinane Kauka, confirmed that the ruling had indeed been delivered but did not divulge more details.
“I am yet to report to my client (MSB) who can divulge the information at your request,” he said.
There has been a protracted legal tussle between the two parties after MSB put on sale Mulli Brothers assets worth about K3.3 billion.
Some of the assets that were placed on sale include an estate in Thyolo valued at K466, 225, 000.
Another is a tea estate in Mulanje with several developments on it extending on 43.3965 hectares, pegged at K1, 754,158,600.
An estate alongside a tourist lodge in Mulanje along the Mulanje- Phalombe road worth K584, 245, 000 and a commercial plot at Nantipwili in Thyolo whose value is at K514, 870,000 were also put on sale.
Earlier MSB legal advisor, Fidelia Mluwila had confirmed the sale quoting the earlier court ruling saying the court had cleared them to sell the properties.
But MBL said the bank, which was sold to FDH Bank Holdings on Thursday, was acting in contempt of court because of a stay order the Supreme Court of Appeal granted on February 4, 2015 stopping the sale.
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