Synergy Industrial Credit has filed a fresh lawsuit against I&M Bank and a senior bank executive, seeking Sh5.77 billion in damages over claims that the lender obstructed efforts to recover a long-standing court award linked to the 14 Riverside Drive property in Nairobi.
The dispute is part of a prolonged legal battle over the ownership and sale of the high-value commercial complex, which has been entangled in litigation for more than a decade.
At the centre of the new case is Synergy’s claim that I&M Bank repeatedly interfered with attempts to enforce a court decree against Cape Holdings Ltd, the company that owns the property. Synergy argues that these actions unlawfully delayed the recovery process and caused financial losses running into billions of shillings.
In its filing at the High Court, the creditor accuses the bank and its executive director of blocking or frustrating planned auction attempts, effectively preventing the execution of a judgment that has remained unpaid since 2021.
The company bases its claim on what it terms the “Marex tort,” arguing that the bank deliberately interfered with its legal right to enjoy the benefits of a court judgment.
According to court documents, Synergy says the prolonged delays resulted in accumulated losses amounting to Sh5.77 billion, representing the difference between the original decretal sum and its current value after years of interest and litigation delays.
The dispute traces back to an arbitration award issued in 2015 following a failed property transaction involving Synergy and Cape Holdings. The arbitrator ordered Cape Holdings to repay Sh1.6 billion, a figure that has since grown significantly due to accrued interest.
Synergy maintains that repeated legal challenges and injunctions, some linked to I&M Bank’s actions have stalled enforcement efforts, preventing it from recovering the debt or proceeding with the sale of the 14 Riverside complex.
The bank, however, has previously argued that it holds a secured interest in the property and that any sale must consider competing creditor rights and ongoing insolvency proceedings involving Cape Holdings.
The latest lawsuit adds another layer to an already complex legal battle that has seen multiple court rulings, appeals, and enforcement attempts over the years.
The High Court is expected to first determine whether the case meets the threshold for damages before the substantive dispute is heard.