A legal dispute involving a businessman who won a case against Guardian Bank recently,Rajendra Ratilal Sanghani, and a Ksh70 million Nairobi property has taken a new turn after the Environment and Land Court was informed that the disputed property had since been sold to third parties.
The development emerged during proceedings on Tuesday, September 22, 2026, when the parties appeared before the court to deal with an application dated April 23, 2026.
Sanghani had moved to court seeking orders to stop the sale or transfer of Title No. Nairobi/Block 6/263/8, which is the subject of the dispute involving an alleged fraudulent couple, Thomas Kilonzo Mwanza and daughter of a late Judge, Karen Nkatha Rimita.
Application Declared Overtaken By Events
During the proceedings, counsel for the plaintiff told the court that a replying affidavit filed by the first defendant on September 21, 2026 had revealed that the suit property had already been sold to parties who are not currently part of the case.
The plaintiff’s lawyer consequently asked the court to mark the April 23 application as spent, arguing that the subsequent sale had overtaken the orders that had initially been sought.
The court was also asked to allow the plaintiff to amend the pleadings to reflect the latest developments.
Counsel told the court that the amended pleadings would be filed within 14 days.
Parties Seek Time To Respond
The defendants did not oppose the application being marked as spent or the proposed amendment of the pleadings.
Counsel for the respondents separately sought 14 days from the date of service of the amended pleadings to file their respective defences and statements.
The court allowed the parties to proceed on that basis, with the matter set for further case management.
The parties were directed to comply with Order 11 of the Civil Procedure Rules and the Environment and Land Court practice directions.
Dispute Over Ksh70 Million Property
The case concerns Title No. Nairobi/Block 6/263/8, a property valued at approximately Ksh70 million.
Sanghani had sought temporary and permanent injunctions to prevent the property’s sale or transfer, claiming that he had used his own funds to save it from an impending public auction and had subsequently changed his position in relation to the property.
The businessman had accused the defendants of going against the transaction and sought the court’s intervention to protect his interests in the property.
The matter has now moved into a different phase following the disclosure that the property has been sold to third parties.
Additional Forgery Charges
The developments come as Mwanza and Rimita also face a separate forgery case, adding another legal matter to the ongoing dispute surrounding their dealings.
Pre-Trial Conference Set For November
Following the directions given in court, the parties are expected to exchange the amended pleadings and responses before the matter proceeds to its next stage.
The case has been referred to the Deputy Registrar for a pre-trial conference on November 4, 2026.
The latest proceedings therefore shift the focus of the dispute from the application seeking to stop the sale to the legal consequences of the reported sale and the claims that will be advanced through the amended pleadings.
