The amount will be paid with a 12 per cent interest backdated to 2001.

The court further directed Guardian Bank to release the securities belonging to Guilders.

The four investors told the court that they were the majority shareholders of Guilders International Bank before they sold them to the said directors of Guardian Bank claimed that they sold 200,000 shares but the directors failed to honor the sale of agreement of 196 million.

They argued that they fulfilled their contractual obligation and transferred their shares in the Guardian bank but the said directors breached the contract between them. The case was filed in 2005.

Rajendra Sanghani, a director of Guilders sued Guardian Bank through Shivali Investments, Naval Holdings, Ketty Investments, and Saaf Holdings, as CEO of the four companies, which he claimed were instrumental in the sale.

Justice Alfred Mabeya ruled that plaintiffs have proved their case to the required standards against the defendants, jointly and severally for Ksh. 196 million being the consideration price for the sale of 200,000 shares in Guilders International Bank as per the memorandum of understanding.

“It will be unlawful …that became unrecoverable as at the cut-off date, no notice of the same nor demand was ever made. Even if there was, that was not communicated to the plaintiffs as required under the MOU and the Agreement for purposes of debiting the Memorandum Account. The claim fails,”ruled the judge.

The judge noted they were liable to pay the four investors; Shival Investment Limited, Naval Holdings Limited, Ketty Investments and Saaf Holdings Limited Ksh.196 million plus interest as cosideration for the shares they received from them. 

Rajendra Sanghani claimed that Guardian Bank agreed to pay Ksh.196 million and made him sign a “money receipt” but he and other directors never received any funds from the sale of the shares.

 He also claimed that Guardian shareholders were allowed to collect all dues from its debtors as part of the agreement.

However One of the Guardian Bank’s administrators Amit Chandaria has, however, filed a notice to appeal the judgement.