Cyprus Law | K5 v Akfinans Bank | Homeowners ‘Justified’


Cyprus Law – K5 v Akfinans Bank – Homeowners ‘Justified’

Today, like the rest of you I read of the evidence given by Abdurrahman Guney in the Kulaksiz 5 –v-Akfinans Bank Limited main hearing at Girne District Court on the 27th May 2014.

As you will recall Mr Guney gave evidence in the applications for Interim Injunctions and I had been made aware of the intention to call him for the main case. I had not been told when.

Clearly Cyprus Today’s need for exclusivity of their reports takes precedence over a fee payers needs. It would be nice however if they had the courage to name the bank…it is of course Akfinans Bank Limited.

The scheduled three day hearing this week was cut short to one due to a medical appointment the witness, who was next to give evidence for Kulaksiz 5, had to keep.

K5 Evidence  Cyprus Today from hearing  27 April 2014

When Mr Guney gave evidence for us back in June 2011, during our case requesting an Interim Injunction, the same Judge heard the case and ruled against us in August 2011. It took a High Court Appeal to overturn that decision on the 14th February 2013. As you can see from the time between the two dates, the remaining villas were vulnerable and indeed yet another one was taken during that time.

The same Judge who said no to all requests for an Interim Injunction.

This is how Cyprus Today reported the case 8th June 2011

in Cyprus Today – 8/6/2011
Wednesday, June 8, 2011

Kulaksız 5 Builder admits he made a mistake – A builder at the centre of a loan that was never repaid – sparking an auction of homes bought by expats – has admitted he was wrong. Abdurrahman Gűney, who ran Kulaksız Construction, said he regretted ever having signed on the dotted line for the November 2005 loan on land in Karşıyaka. He told Girne District Court on Monday that he was “ready to enter a judgement and pay compensation”. There was some confusion about whether Mr Gűney or landowner Yüksel Yılmaz took out the 100,000TL loan on the Kulaksız 5 site. Mr Gűney insisted he was the guarantor but was shown banking records that stated he was the borrower. A Land Registry document showed that Mr Yılmaz took out the loan.

Mr Gűney said during cross examination he had not read the documents properly and believed he was simply guaranteeing the loan. “I admit I made a mistake” he said. “I was not acting in a fraudulent manner. I made losses. My company made losses.” “I made a mistake” he said “I was only a guarantor.”

“My understanding was that the landowner, Yüksel Yılmaz, would take out the credit and pay it back quickly” he added. “I did not know it would come to this. I am ready to enter a judgement and pay compensation”. He then said, however, he had no money to pay any compensation. Mr Yılmaz is believed to be in Turkey, working for Pegasus Airlines. The loan, which was taken out despite the construction and sale of homes on the land, was never repaid. A year ago this month, the land, and with it the properties, was sold at public auction, leaving the expat buyers facing eviction.

Last month Cyprus Today revealed claims that Kulaksız Construction had taken out loans on land at four or five sites and nothing had been repaid. A spokesman for the builders denied the claims, which had been made by buyers. The expats are currently involved in a case attempting to prevent the sale of the houses they bought back in 2005. The court heard that in 2009, a previous court case to stop the auction and sale of homes was withdrawn. Richard Barclay, speaking on behalf of the buyers, said this had happened on the advice of their own advocate. He said it was something the buyers were unhappy about, but the judge had told their advocate to withdraw the application. The current court proceedings have been adjourned until Tuesday.”

Seems already the Bank’s name Akfinans Bank Limited was being omitted.

The man of the moment Abdurrahman Guney.

Pauline Read

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