[2024] KEHC 3890 (KLR)

[2024] KEHC 3890 (KLR)

The court found that the applicant had demonstrated that the receiver manager of the respondent company continued to procure security services from the applicant without payment, even after the company was placed in receivership. Since the law requires leave of court to sue a company in receivership, and the...

Source-derived case information.

Citation
[2024] KEHC 3890 (KLR)
Parties
Applicant: Cotec Security Group Limited; Respondent: Muhoroni Sugar Company Limited (In Receivership)
Court
High Court
Court Station
High Court at Kisumu
Jurisdiction
Kenya
Case Number
Miscellaneous Civil Application E200 of 2023
Procedural Posture
Miscellaneous Application / Ruling on Application for Leave to Sue Company in Receivership
Outcome
Application allowed. Leave granted to applicant to file suit against receiver managers for recovery of dues.
Judges
RE Aburili
Legal Topics
Leave to Sue Company in Receivership, Recovery of Dues, Service of Process
Source Language
en
Civil Procedure Leave to Sue Company in Receivership Recovery of Dues Service of Process

Source-derived case record

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Parties

Cotec Security Group Limited

Applicant

Muhoroni Sugar Company Limited (In Receivership)

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application for Leave to Sue Company in Receivership

Legal Issues

  1. 1 Whether the applicant should be granted leave to file suit against the respondent company in receivership for recovery of dues owed for security services rendered.
  2. 2 Whether the respondent, being in receivership, precludes the applicant from instituting proceedings without leave of court.

Ratio Decidendi

The court found that the applicant had demonstrated that the receiver manager of the respondent company continued to procure security services from the applicant without payment, even after the company was placed in receivership. Since the law requires leave of court to sue a company in receivership, and the respondent did not oppose the application despite being served, the court granted the applicant leave to file suit against the receiver managers for recovery of dues owed for security services rendered. The court directed that the suit be filed before the Chief Magistrate’s Court at Kisumu and made no order as to costs.

Court Disposition

Application allowed. Leave granted to applicant to file suit against receiver managers for recovery of dues.

Orders

  • Leave is granted to the applicant to file suit against the respondent's receiver managers for recovery of dues owed for security services rendered.
  • The suit shall be filed before the Chief Magistrate’s Court at Kisumu.