Munga Holdings Company Limited Tuesday moved to Court seeking for orders to enable them evict Nakumatt supermarket from Ridgeways mall.
Munga has also sought an order declaring that the administrator of the troubled supermarket acted in a manner that is detrimental to the landlord by refusing to give consent for repossession of premises.
On January 22, 2018 when the supermarket was given notice of penalty of license and leases the court appointed Peter Obondo Kahi as the administrator.
Under the law once an administrator is appointed, a landlord cannot exercise right of penalty by re-entry without permission of court or the consent of the administrator.
The court was told that Nakumatt holdings has failed to pay any of the rental arrears both past and present.
According to court documents the supermarket has arrears standing at Sh36 million as at March 5, 2018
The Court heard that Nakumatt started failing to pay rent and service charge in January 2017.
And the lease agreement signed by the two provides for right of re-entry in the event of a breach of a covenant and particularly in the event that rent is unpaid.
Munga Holdings says it has suffered significant financial loss and the imminent collapse of its business unless it is given green light to terminate the lease with Nakumatt.
Munga Holdings retaliated that they have extremely suffered great economic hardship as a result of being unable to exercise its proprietary rights namely re-entry the premises and to put them to ecenomic use beneficial to it.
Source: Kenya News Agency