FCB Mihrab Building Associated With Lawyer Ahmednasir Sued Over Half A Billion Shillings Debt

A leading firm behind the construction of the iconic FCB Mihrab building in Kilimani area has moved to court to block the owner from leasing or selling units until a pending debt of half-a-billion shillings is settled.

The building hosts a number of clients including Ahmednasir Abdullahi Advocates LLP.

Cementers limited wants the high court to issue an order restraining Mihrab Development limited from selling, transferring or charging, renting or registering any further dealings on LR No. Nairobi Block 19/145 (previously known as LR No. 1/1339 before conversion) and the developments, thereon pending settlement of Sh595,153,163.

Cementers ltd is leading firm of building and civil engineering contractors with over 40 years industry experience.

It has offices in Kenya and Uganda and operations throughout the greater Eastern Africa region.

In documents filed before Environment and Land Court, the firm says on or about June 28, 2013 the construction firm and Mihrab Development ltd entered into a contract for construction of office building.

Mihrab Development ltd was required to pay the amount certified in each interim payment certificate upon receipt of the Architect/Engineer’s certified payment certificate Pursuant to this provision, the architect issued certificates No. 35 and 37 which have remained unpaid in full to date.

Further, pursuant to clause 14.7 (c) of the said contract, Mihrab Development ltd was required to pay the amount certified in the final payment within 14 days upon receipt of the final payment certificate.

Mihrab Development ltd has failed, refused, and or neglected to pay Sh. 595,153,163.91 being the total amount due under interim payment certificates No. 35 and 37 and the final account payment.

The construction firm says the developer is yet to compensate cementers ltd for work done on the suit property having failed to settle certificates Nos. 35 and 37 and the final account payment despite successful completion of construction and taking full possession thereof.

The total amount owing on account of Mihrab’s failure to fully pay for the developments constructed on the suit property is Sh. 595,153,163.9. Cementers ltd is apprehensive that the Mihrab Development intends to wholly sell the developments on the suit property being the office building known as FCB Mihrab.

The construction firm having successfully developed the suit property, it has a legal and beneficial interest in the said property and the developments.

“There is reasonably apprehensive that Mihrab has commenced a process in earnest to identify suitable purchasers of the remaining portions of the development on the suit property with a view to selling it to such purchasers so as to defeat any interest that the Plaintiff has in the suit property,” company told the court.

The company through it director Dipak Halal argues that it is necessary that the suit property be preserved by the court as Mihrab Development ltd is engaged in a scheme to frustrate and defeat Cementers’s interest in the property and the developments undertaken thereon.

Mihrab Development ltd has no other known assets or place of business in Kenya upon which execution of any decree can be levied or the debt recovery process may be undertaken successfully according to Cementers ltd.

“On account of Mihrab’s willful and unconscionable refusal to fully settle the outstanding interim payment certificates and final account aforesaid the Cementers ltd has experienced extreme cash flow distress thereby jeopardizing ongoing construction projects and leading to default in Cementers’s financial obligations including loan facilities granted by NCBA Bank Plc.

According to the construction argues that there is no suit pending and that there have been no other previous proceedings in any Court between the same parties hm over the same subject matter save for the ongoing debt recovery proceedings sought to be frustrated and defeated by Mihrab Development ltd through sale of the remaining portions.