[2007] KEHC 744 (KLR)

[2007] KEHC 744 (KLR)

The court found that the plaintiffs were entitled to sue the company in its own name despite its receivership status, as established by precedent. The defendant failed to rebut credible evidence that substantial company assets had been sold and that there was no accounting for the proceeds. The court was satisfied that there was a real risk of dissipation of assets or proceeds with intent to obstruct or delay execution of any future decree. Exercising its discretion under the Civil Procedure Rules, the court granted the plaintiffs' application for attachment of the proceeds of sale and, in the alternative, ordered the defendant to deposit Kshs 20,000,000 in a joint escrow account to...

Citation
[2007] KEHC 744 (KLR)
Parties
Plaintiff: Absolomo Jayuga Ngiliman, Samson Mbecha Bota, Simon Ndirangu Kirukwa, Joram Nzoywa Lavate, George Murimi Gathima, Wellington Wachiye, Geoffrey Kiptanui Cheptoch, Ezekiel Mulonga Oidue, Tamima Wamboi Kihara, Eliud Khombe Mulinga, Johnstone Othieno Othieno, Patrick Muchiri Mungai, Charles Benjamin Mue, Willy Njau Kamau, Hudson Mungole Indiavo, James Ngure Kamau, Peter Pancras Ekesa, Samuel N. Ngeresa, Sebastian Desterio Wakhaya, Ben Kipkemboi Aiyabei, Mathew Saina, David Mutingu Jayuga; Defendant: Rift Valley Textiles Limited (in Receivership)
Court
High Court
Court Station
High Court at Eldoret
Jurisdiction
Kenya
Judgment Date
9 November 2007
Case Number
Civil Case 124 of 2006
Procedural Posture
Civil Case / Interlocutory Application for Security and Attachment Before Trial
Outcome
Application allowed; interlocutory orders for attachment and security granted.
Legal Topics
Security for Decree, Attachment of Property, Receivership Liabilities, Company in Receivership, Interlocutory Orders
Source Language
English
Civil Procedure Commercial and Corporate Security for Decree Attachment of Property Receivership Liabilities Company in Receivership Interlocutory Orders

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Absolomo Jayuga Ngiliman, Samson Mbecha Bota, Simon Ndirangu Kirukwa, Joram Nzoywa Lavate, George Murimi Gathima, Wellington Wachiye, Geoffrey Kiptanui Cheptoch, Ezekiel Mulonga Oidue, Tamima Wamboi Kihara, Eliud Khombe Mulinga, Johnstone Othieno Othieno, Patrick Muchiri Mungai, Charles Benjamin Mue, Willy Njau Kamau, Hudson Mungole Indiavo, James Ngure Kamau, Peter Pancras Ekesa, Samuel N. Ngeresa, Sebastian Desterio Wakhaya, Ben Kipkemboi Aiyabei, Mathew Saina, David Mutingu Jayuga

Plaintiff

Rift Valley Textiles Limited (in Receivership)

Defendant

Procedural Posture

Civil Case / Interlocutory Application for Security and Attachment Before Trial

Legal Issues

  1. 1 Whether the defendant company, under receivership, should be ordered to furnish security or have its property attached to secure the plaintiffs' claim.
  2. 2 Whether the plaintiffs are entitled to interlocutory orders to prevent disposal of assets that may obstruct execution of a future decree.
  3. 3 Whether the suit against a company in receivership is properly constituted.

Ratio Decidendi

The court found that the plaintiffs were entitled to sue the company in its own name despite its receivership status, as established by precedent. The defendant failed to rebut credible evidence that substantial company assets had been sold and that there was no accounting for the proceeds. The court was satisfied that there was a real risk of dissipation of assets or proceeds with intent to obstruct or delay execution of any future decree. Exercising its discretion under the Civil Procedure Rules, the court granted the plaintiffs' application for attachment of the proceeds of sale and, in the alternative, ordered the defendant to deposit Kshs 20,000,000 in a joint escrow account to...

Court Disposition

Application allowed; interlocutory orders for attachment and security granted.

Orders

  • Immediate attachment of the proceeds of sale of the assets of the defendant company to Rivatex East Africa Limited (Moi University) pending hearing of the suit and securing of the claimed amount up to Kshs 20,000,000 including costs and interest.
  • In the alternative, the defendant shall deposit Kshs 20,000,000 in a joint escrow account in the names of the advocates on record within 14 days, to be held until hearing or further court orders.