EQUITY Properties has attached assets worth over $22,8 million that had been ceded by Interfin Bank when it secured a loan from a company owned by Indian businessman Jayesh Shah.
BY BUSINESS REPORTER
Interfin is currently under liquidation.
The total assets ceded to Shah’s Al Shams Global were worth $25 million in the form of Bankers Acceptances (BAs), a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit at the bank. Of the assets, BAs worth $2,2 million belong to Equity Properties.
The attachment of the property in September came via a High Court order which also gave Equity Properties the nod to attach the Ecobank account of Al Shams Global.
The court granted Equity Properties leave to serve summons and a declaration in respect of its claims for vindication of its property and attendant delictual damages against Al Shams Global to the company’s legal practitioners Dube, Manikai and Hwacha. It its founding affidavit, Equity Properties said Al Shams Global was in unlawful possession of a certain title deed, Deed Transfer number 9068/08 which it had used as collateral to access a $1,6 million credit facility from Interfin.
The property concern said at the time the facility was granted, Interfin registered a first mortgage bond number 5818/2011 in favour of Interfin for $2,5 million against a certain piece of land, Lot 3 of Bannockburn, deed of transfer number 9068/08 which belonged to Equity. It said the mortgage bond was cancelled by the court.
It said upon registration of the mortgage bond, the title deed to the encumbered property was kept in Interfin Bank’s possession. Equity said it had settled the debt owed to Interfin but Al Shams was holding onto the title deeds.
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Equity said it would sue Al Shams for $10 million for the unlawful withholding of its property.
Al Shams Global BVI Limited had won at the High Court in which it wanted the assignment and security Trust Deed they had concluded with Interfin Bank declared binding and enforceable after the Deposit Protection Corporation (DPC) as the liquidator of the bank was reneging on the deal.
DPC appealed to the Supreme Court and the appeal was struck off the roll with costs.
Equity Properties said in the affidavit that the conduct of Al Shams Global had resulted in the property concern suffering a financial loss in the sum of $10 million.
Legal experts said yesterday the victory by Equity Properties gives Interfin depositors a chance to mount their case against Al Shams Global and the liquidator challenging the preferred creditor’s status granted to Shah’s company. They say the ruling should force Shah to the negotiating table with Equity Properties.
