Monday, December 5, 2022

Bhachu sues Buzeki over multi-million debt, bouncing cheques

Bhachu Industries is among creditors who are seeking to recover millions of money they are owed by businessman Zedekiah Bundotich who is popularly known as Buzeki.

In he latest court hearings over the debts owed by Buzeki, the High Court dismissed an attempt by the NCBA Bank Group to strike out an insolvency case filed against Buzeki Enterprises Ltd by Bhachu.

NCBA was seeking to have the case dissolved on grounds that the Sh. 94 million debt being sought by Bhachu is not clear. NCBA had told the court that it would be against the law to try and liquidate the firm over an unclear debt. It also said that the case should have been filed in Mombasa where Buzeki has offices.

However, Justice Wilfrida Okwany determined that the contract between Buzeki and Bhachu was drawn and executed in Nairobi and the trailer manufacturer did not err in filing the case in Nairobi. “I, therefore, find that this court has the jurisdiction to hear and determine the petition,” he ruled.

Bhachu had filed the case to liquidate Buzeki 24 months ago after the trucker failed to pay off debts he owed the trailer manufacturer.

Davinder Bhachu told the court that Buzeki purchased several tippers in 2011 and his company paid for them through cheques which bounced.

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On the other end, the NCBA Bank Group is seeking more than Sh. 1 billion from Buzeki for a loan used to finance purchase of 289 trucks and 141 trailers between 2006 and 2016.

Buzeki is the founder of Buzeki Group of Companies that specializes in transport and dairy products. The businessman was the owner of Kilifi Gold and Molo Milk. He sold Molo milk to Brookside, owned by the Kenyatta family, to concentrate on the transport business.

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