[2007] KEHC 318 (KLR)
The court found that the applicants, as former employees with pending claims against the company in liquidation, had demonstrated a real apprehension that the company's only assets—being the subject properties—might be alienated before their claims are determined. The court held that, in the interest of justice and...
Source-derived case information.
- Citation
- [2007] KEHC 318 (KLR)
- Parties
- Applicant: Francis Mwenda & 113 Others; Respondent: Liquidator Abogeta Farmers Co-op Society Ltd
- Court
- High Court
- Court Station
- High Court at Meru
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 178 of 2002
- Procedural Posture
- Civil Suit / Interlocutory Application
- Outcome
- application allowed
- Legal Topics
- Inhibition Orders, Preservation of Property, Employee Claims, Liquidation Proceedings
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Francis Mwenda & 113 Others
Applicant
Liquidator Abogeta Farmers Co-op Society Ltd
Respondent
Procedural Posture
Civil Suit / Interlocutory Application
Legal Issues
- 1 Whether the applicants are entitled to an order of inhibition over the respondent's properties pending determination of their claim.
- 2 Whether the court has jurisdiction to grant an inhibition to preserve the subject matter of the suit.
Ratio Decidendi
The court found that the applicants, as former employees with pending claims against the company in liquidation, had demonstrated a real apprehension that the company's only assets—being the subject properties—might be alienated before their claims are determined. The court held that, in the interest of justice and to preserve the subject matter, it was appropriate to grant an inhibition order to prevent any dealings with the specified properties until the applicants' claims are resolved. The merits of the underlying claim were not determined at this stage; the focus was on preserving the status quo to avoid rendering any eventual judgment ineffectual.
Court Disposition
application allowed
Orders
- An order of inhibition is granted, inhibiting registration of any dealings in L.R. No.s Abogeta/L.Kithangari/599, Abogeta/UpperKiungone/1039, Abogeta/UpperKiringa/561, Abogeta/L.Kiungone/516, Abogeta/U.Kiungone/1041, Abogeta/L.Kithangari/816 and Abogeta/L.Kiungone/560, all registered in the name of the respondent...
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA
HIGH COURT AT MERU
CIVIL SUIT 178 OF 2002
FRANCIS MWENDA & 113 OTHERS ……………………APPLICANTS/PLAINTIFFS
VERSUS
LIQUIDATOR ABOGETA FARMERS CO-OP SOCIETY LTD....…RESPONDENTS/DEFENDANTS
RULING
This application was argued exparte as the respondent or counsel, despite service, did not respond or attend the hearing.
The application is for inhibition of certain properties registered in the name of Abogeta Farmers Co-operative Society Ltd, now under liquidation. The applicants, 113 in number state through one of them, Geoffrey Nkonge, that they are former employees of Abogeta Co-operative Society Ltd (the company) who are owed certain dues by the company.
They are apprehensive that they may not realize their dues which form the basis of the suit herein if the only assets of the company sought to be inhibited are alienated.
They aver that in Meru CMCC No.112/2001, an inhibition had been issued but the same lapsed or vacated when the Chief Magistrate’s court declared that it had no jurisdiction in the matter, hence the present application.
For purposes of maintaining status quo pending the occurrence of a particular event, the court has powers to make an order inhibiting the registration of any dealing with any land.
The court at this stage, in exercising this discretion, is concerned with ensuring that the subject matter is not wasted or alienated before the event upon which the inhibition order is sought. In this case the applicants allege that the company owes them certain dues that they fear may not be paid if the properties they seek to inhibit dealings in are not preserved.
The merits of that claim is not in issue. In the result I am persuaded that in the interest of justice the applicants are entitled to the orders sought. It is now ordered that there shall be an order of inhibition, inhibiting registration of any dealings in L.R.No.s.Abogeta/L.Kithangari/599,Abogeta/UpperKiungone/1039,
Abogeta/UpperKiringa/561,Abogeta/L.Kiungone/516,Abogeta/U.Kiungone/1041,Abogeta/L.Kithangari/816 and Abogeta/L.Kiungone/560, which have been shown to my satisfaction are all registered in the name of the company.
Orders accordingly.
DATED AND DELIVERED AT MERU THIS 20TH DAY OF JULY, 2007
W. OUKO
JUDGE