[2018] KEHC 9943 (KLR)
The court found that the applicant failed to establish the legitimate source of the Kshs.16,130,000 deposited in his account at Equity Bank. The evidence presented by the Commercial Bank of Africa indicated that the funds were likely fraudulently transferred, justifying the freezing of the applicant's accounts. The...
Source-derived case information.
- Citation
- [2018] KEHC 9943 (KLR)
- Parties
- Applicant: Erick Ngugi Gatimu; Respondent: Equity Bank Limited; Respondent: Director of Criminal Investigations; Interested Party: Commercial Bank of Africa
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Criminal Case 518 of 2018
- Procedural Posture
- Miscellaneous Criminal Application / Ruling on Application for Dismissal
- Outcome
- application dismissed
- Judges
- LK Kimaru
- Legal Topics
- Proceeds of Crime, Account Freezing Orders, Money Laundering Investigations, Burden of Proof
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Erick Ngugi Gatimu
Applicant
Equity Bank Limited
Respondent
Director of Criminal Investigations
Respondent
Commercial Bank of Africa
Interested Party
Procedural Posture
Miscellaneous Criminal Application / Ruling on Application for Dismissal
Legal Issues
- 1 Whether the applicant has established the legitimate source of funds deposited in his account at Equity Bank.
- 2 Whether the freezing of the applicant's accounts was justified pending investigations by the Director of Criminal Investigations.
- 3 Whether the applicant is entitled to relief from the court while evading criminal investigation.
Ratio Decidendi
The court found that the applicant failed to establish the legitimate source of the Kshs.16,130,000 deposited in his account at Equity Bank. The evidence presented by the Commercial Bank of Africa indicated that the funds were likely fraudulently transferred, justifying the freezing of the applicant's accounts. The applicant's refusal to present himself to the authorities further undermined his claim for relief. The court held that equitable relief cannot be granted to a party who does not act in good faith and who seeks to avoid lawful investigation. Accordingly, the application to lift the freezing orders was dismissed as lacking merit.
Court Disposition
application dismissed
Orders
- The application is dismissed for lack of merit.
- The freezing orders on the applicant's accounts remain in force pending further investigations.
Full Case Text
Judgment text and source record
16 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
CRIMINAL DIVISION
MISCELLANEOUS CRIMINAL CASE NO.518 OF 2018
ERICK NGUGI GATIMU...........................................................APPLICANT
VERSUS
EQUITY BANK LIMITED..............................................1ST RESPONDENT
DIRECTOR OF CRIMINALINVESTIGATIONS.......2NDRESPONDENT
AND
COMMERCIAL BANK OF AFRICA......................INTERESTED PARTY
RULING
The application before me is for dismissal. The Applicant has not shown or established the source of the funds that were deposited in his account at Equity Bank. Prima facie, Commercial Bank of Africa has established that funds which were fraudulently transferred from its accounts may have found its way in the Applicant’s accounts that were frozen. The Director of Criminal Investigations is investigating the said accounts. The Applicant has gone underground and does not wish to present himself to the police so that he can put his case forward in regard to how the said colossal sum of Kshs.16,130,000/- landed in his account. This is a court of equity. He who comes to equity must come with clean hands. The Applicant cannot be allowed to use the court process to access a right, yet on the other hand does not want to avail himself to be subjected to the same court process, albeit a criminal one.
This court holds that both Commercial Bank of Africa, Equity Bank and Director of Criminal Investigations were entitled, nay, justified to have the said accounts frozen pending further investigations by the Director of Criminal Investigations. The application lacks merit and is hereby dismissed.
DATED AT NAIROBI THIS 11TH DAY OF OCTOBER 2018
L. KIMARU
JUDGE