Brookside Dairy Settles Debt with Nyali MP, Averting Asset Seizure

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Brookside Dairy Limited pays off Ksh.579,126 debt owed to Nyali MP Mohamed Ali, avoiding potential auction of assets.

The company filed an application to halt the auction after a defamation case was dismissed in October 2022

Brookside Dairy Limited has successfully resolved a long-standing debt of Ksh.579,126 owed to Nyali MP Mohamed Ali, preventing the seizure and auction of its assets. The payment was made following a defamation case filed by Brookside against Ali, which was subsequently dismissed by the High Court in October 2022.

In a letter to Mohamed Ali’s lawyers, Brookside stated, “As a matter of abundant caution… we hereby enclose our cheque in the sum of KShs.579,126/- towards payment of the figure stated in the said proclamation.” The company clarified that the payment was made without prejudice to the ongoing legal proceedings and did not imply an admission of the validity of the initial proclamation.

Earlier, Nyali MP Mohamed Ali had obtained a warrant of sale and attachment of movable properties, including dairy cows, as part of the debt recovery process. However, Brookside Dairy Limited filed an application to halt the auction, claiming that Ali had initiated execution proceedings based on an allegedly unlawful certificate of costs.

The defamation case stemmed from allegations that Ali had incited the public to cause economic and commercial harm to Brookside’s business. Despite the dismissal of the suit, the costs awarded to Ali had not been paid, leading to the execution proceedings.

With the debt now settled, Brookside Dairy Limited has successfully averted the auction of its assets. The company’s lawyers sought an order suspending the execution proceedings and restraining the auctioneers from taking further action. They also requested the quashing of the execution proceedings and warrants of attachment and sale issued by Ali.

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