Africa Merchant Assurance Company (Amaco) has been auctioned for failing to honour an order given by High Court judge Msagha Mbogholi.
The judge last month ordered Amaco to deposit Sh2 million and make a bank guarantee of Sh13 million within 14 days. The period lapsed last week.
Men from an auctioneering company known as Dollar were seen on Tuesday moving away with properties of Amaco.
The judgement was reached after Mama Rael Memorial Foundation through their lawyer Henry Kurauka moved to court asking the insurance company to pay Sh15 million in breach of an insurance contract.
“The ruling made on December 5, 2019, is varied and the order for the deposit of Sh5 million is hereby set aside,” Mbogholi said.
The payment was part of Sh25 million compensation that was awarded by the court in a verdict last year.
Amaco insurance later sought stay orders in executing the award pending hearing of an appeal in an application dated June 17, 2019.
The court said the application was allowed provided the insurance company deposited Sh5 million in an interest-earning account in the joint names of the advocates for the parties within 30 days from the date of the ruling.
“Amaco did not comply but instead filed an application in January 2020 to review the order and be allowed to deposit Sh2 million and a guarantee for the balance,” the court said.
However, the application was opposed by the foundation’s lawyer, who asked the court to dismiss it.
“Reason advanced by Amaco to review and vary the terms provided to secure a stay of the execution was that they have not been able to raise Sh5 million due to a severe economic downturn,” Mbogholi said.
The application was dismissed by the Judge on grounds of lacking sufficient reason.
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