Bank of Baroda directors are facing contempt proceedings after a borrower, Infinity Industrial Park, accused them of using a Sh2.2 billion debt claim to take control of the company in breach of a court order.

In its application seeking to have the directors cited for contempt, Infinity says the bank appointed joint administrators on August 10, 2026, despite a High Court order barring it from taking possession of or interfering with its property in Nairobi's Njiru area.

The dispute stems from a Sh1.9 billion loan by Bank of Baroda to Infinity in 2019 to finance its industrial park project along Nairobi’s Eastern Bypass.

The facility was secured against several properties including industrial park land at Njiru, Nairobi. The loan facility comprised a takeover loan from Equity Bank, a fresh overdraft and a fresh term loan.

Infinity became indebted to the bank under that facility, and the lender claimed that the company was in default and sought to exercise its rights over property given as security in a bid to recover Sh2.2 billion. The bank relied on this alleged debt to justify taking control of the company.

Infinity says the bank’s appointment of joint administrators came after the court entered judgment against the lender and dismissed its attempt to set aside that judgment, which included a Sh2.9 billion special-damages claim.

“Noting judgment had been entered against it, and the plaintiff was set to implement the same in accordance with the directions of the court, the defendant, without any legal basis, mischievously sought to take over the plaintiff in order to subvert the implementation of this court’s orders,” says Mr Ashok Rupshi Shah, Infinity’s majority shareholder, in his affidavit.

He adds that the bank’s actions threaten Infinity’s ability to enforce the judgment entered against the lender, including a Sh2.9 billion special-damages claim.

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Mr Shah says the proposed takeover could also prevent Infinity from pursuing the judgment and other claims because the administrators would control the company’s affairs and assets. The company wants the court to cite the bank's directors and the two administrators for contempt.

The court on Wednesday certified the application as urgent, directed respondents to file responses within three days and allowed the request to restore the status quo pending further directions on September 1.

The application says the administrators moved into the company on August 11, demanding assets, documents, books and records. It also says they took steps affecting employees.

The alleged takeover is said to breach a permanent injunction contained in the September 8, 2025 default judgment. The order barred the bank from selling or disposing of the Njiru property, taking possession, appointing receivers or administrators, or otherwise interfering with it.

The injunction covered property registered as LR 31978, formerly LR 11522, along the Eastern Bypass.

The judgment also followed the bank’s failure to file its defence. Bank of Baroda later applied to set aside the judgment, but the court dismissed that application on July 31, 2026.

The court said the bank knew it had been given time to file a defence but failed to comply before the pre-trial conference. The bank had later argued that its intended defence raised issues involving the replacement charge over LR No. 31978, the amount secured and a statutory notice for Sh2 billion.

The court held that triable issues alone did not justify reopening the case. The latest application says the administrators’ appointment was based on an alleged debt of Sh2.2 billion. Mr Shah argues that Infinity already has judgment against the bank involving a Sh2.9 billion special-damages claim.

Mr Shah says he is Infinity’s majority shareholder and personally guaranteed loans taken by the company. He says the bank’s attempt to take control could affect his interests and liabilities arising from those guarantees.

Infinity also seeks cancellation of the August 10 insolvency notice and consequential actions, including an August 11 letter said to terminate employees. The application alleges the terminations were undertaken without following employment law procedures.

The company asks the court to hold Bank of Baroda, its directors Astitva Bhardwaj and Aman Kumar, and the two administrators in contempt. It also seeks fines, civil jail or other lawful sanctions and withdrawal of the insolvency notice.

The August 11 letter said employees would stand dismissed “as no fault of their own,” the application states.

The contempt application is pending determination.

jwangui@ke.nationmedia.com