NCBA Auctions: The NCBA Bank Group is seeking to auction a prominent transport and logistics firm over a Sh. 246 million debt. The bank is seeking to auction the Mombasa-based Shiva Carriers Ltd, Jagged Alliance Ltd and directors Deepak Madan and Raveej Deepak. This after the borrowers failed to appear or file a defense in its petition seeking to repossess property.
According to a report that appeared in the Business Daily on Wednesday, NCBA also wants Springbank Investment Ltd, a firmed owned by the directors, compelled to pay Sh. 50 million and interest at commercial rates.
“In its suit papers, NCBA says it had advanced Shiva Carriers Ltd various loans in March 2009, September 2012, August 2014, April 2015 and November 2017,” the daily reported. “As directors and shareholders of Shiva, Mr Madan and Mr Deepak acted as guarantors of the loans, giving three separate guarantees on diverse dates.”
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In addition to the guarantee and undertakings, the bank said in court papers, Jagged Alliance Ltd as a related company to Shiva Carriers Ltd gave a guarantee and undertaking of Sh. 263 million. NCBA further told the court that Springbank also offered its parcel of land as security in 2011 and 2015.
Following the default by Shiva Carriers, NCBA repossessed trucks and trailers it financed. However, the company filed a case at the High Court in Mombasa in 2017 to block the repossession and any auctioning. The firm then withdrew the petition through a notice dated October 3, 2019. “Since withdrawal of the suit, Shiva Carriers Ltd has continued to default in repaying the banking facilities as contracted or at all,” NCBA told the court.
