Mulli Brothers property can be sold to recover debts, appeal court sides with Malawi Saving Bank
Barely 24 hours after government sold shares in Malawi Savings Bank (MSB), the Supreme Court of Appeal in Blantyre on Friday dismissed an application by Mulli Brothers Limited (MBL) restraining the bank from selling the company’s property worth K3.3 billion.
The bank has over the past two years been pressing MBL to repay loans that have soared to K3.2 billion forcing it to flight advertisements for the sale of some properties belonging to the company in a bid to recover its money.
Lawyer representing MBL, Chauncy Gondwe, confirmed that a judgement delivered by a three-man panel of judges discharged an order for stay of execution of an earlier ruling by a lower court.
Lawyer for Malawi Savings Bank, Alinane Kauka, confirmed that the ruling had indeed been delivered but did not divulge more details.
There has been a protracted legal tussle between the two parties after MSB put on sale Mulli Brothers assets worth about K3.3 billion.
Some of the assets that were placed on sale include an estate in Thyolo valued at K466, 225, 000.
Another is a tea estate in Mulanje with several developments on it extending on 43.3965 hectares, pegged at K1, 754,158,600.
An estate alongside a tourist lodge in Mulanje along the Mulanje- Phalombe road worth K584, 245, 000 and a commercial plot at Nantipwili in Thyolo whose value is at K514, 870,000 were also put on sale.
Earlier MSB legal advisor, Fidelia Mluwila had confirmed the sale quoting the earlier court ruling saying the court had cleared them to sell the properties.