NAIROBI, Kenya, October 4, 2025 – The Court of Appeal has ordered the Chandaria family and Guardian Bank to pay nearly KSh 2.5 billion to Shivali Investments Limited and associated parties. The ruling ends a legal battle that has dragged on for more than two decades.
How the Dispute Began
The conflict traces back to 1999, when Shivali Investments, led by businessman Rajendra “Raju” Sanghani, agreed to sell 200,000 shares in Guilders International Bank Limited.
The buyers included Guardian Bank Limited and members of the Chandaria family — Amit, Hetul, Bhavnish, Nisha, and Mahesh — along with their firms Conifers Trading, Chandaria Holdings, Dima Limited, Goldera Limited, and Kevis Investments.
According to Shivali, the sellers transferred the shares but never received the agreed KSh 196 million. The Chandarias countered that the bank’s assets had been overvalued and withheld payment.
For context on how Kenyan courts handle corporate disputes, see sauce.co.ke business coverage.
Court of Appeal’s Findings
On October 3, 2025, Justices Daniel Musinga, Francis Tuiyott, and George Odunga delivered a landmark judgment. They made three critical findings:
1. Binding Contract: The judges ruled that the December 30, 1999 Sale Agreement was the valid contract, not an earlier Memorandum of Understanding.
2. Missed Deadline: The Chandarias failed to meet the December 31, 2001 deadline requiring them to declare irrecoverable loans. A report prepared in 2014 was dismissed as irrelevant.
3. Counterclaim Dismissed: Their KSh 827 million counterclaim collapsed because they could not prove the sellers breached their obligations.
Adjustments to the Award
The court did acknowledge one defense point. Evidence showed that Mr. Sanghani attended a Debt Recovery Committee meeting in June 2000, where KSh 6 million in hidden liabilities emerged.
The judges deducted this figure but upheld the rest of the claim.
Final Orders Issued
The appellate court issued clear instructions:
- The Chandaria family obligors must pay KSh 196 million plus interest at standard court rates.
- Guardian Bank must release securities provided by the sellers, except for four properties whose sales had been approved.
- The Chandarias will shoulder three-quarters of legal costs, while Guardian Bank will cover the remainder.
According to Business Daily Africa, accrued interest and costs raise the total liability to about KSh 2.5 billion.
