Smart cars and car city limited have filed a insolvency petition against Kimilili MP Didmus Barasa.The company filed a creditors petition insolvency against the legislator who is listed as the debtor.
The petition is set to be heard o March 26 and any interested party has been asked to file a notice to appear and serve the notice to both parties. The Notice of hearing for the petition was ordered by an advertisement in the local dailies.
The case arises from the sale of Motor Vehicle Toyota Land Cruiser which was sold to the honorable Member of Parliament by Smart Cars Limited on September 25, 2017. This is his official car.
According to the lawyer handling the case the agreed purchase price was Sh. 11,700,000 and he paid Sh. 1,000,000 whereas Sh.7,000,000 was financed and paid by the National Assembly. He however failed to pay the balance of Sh. 3,700,000 after the car was released to him for use.
After several fruitless legal demands, Smart Cars Ltd filed Civil Case No. 4850 of 2018 against the Member of Parliament. After negotiations, a consent judgement was issued against the Member of Parliament on 31st October 2018 whereby he agreed to pay the balance of the purchase price and costs assessed at Sh.500,000 by eight monthly installments of Sh.462,500 with effect from September 5, 2018 until payment in full. He failed to make any installment.
The lawyer told Kahawa Tungu that to date, the said principal sum of Sh.3,700,000 plus costs of Sh.500,000 were still outstanding. The Member of Parliament failed to respond to demands served upon him before filing the Insolvency Petition.