[2018] KEHC 2357 (KLR)
The court found that the debtor had complied with the statutory requirements for a receiving order by filing the statement of affairs and a statement of inability to pay. The absence of the Official Receiver on the hearing date, despite due notice, did not preclude the court from proceeding. The court was satisfied...
Source-derived case information.
- Citation
- [2018] KEHC 2357 (KLR)
- Parties
- Applicant: Nileshchandra Vaghji Shah; Respondent: Official Receiver
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause Cause14 of 2013
- Procedural Posture
- Bankruptcy Cause / Ruling on Petition for Receiving Order
- Outcome
- Petition allowed; receiving order issued.
- Legal Topics
- Bankruptcy Petition, Receiving Order, Insolvency Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Nileshchandra Vaghji Shah
Applicant
Official Receiver
Respondent
Procedural Posture
Bankruptcy Cause / Ruling on Petition for Receiving Order
Legal Issues
- 1 Whether the debtor has satisfied the requirements for issuance of a receiving order under bankruptcy law.
- 2 Whether the statement of affairs and inability to pay filed by the debtor are sufficient to warrant the order.
Ratio Decidendi
The court found that the debtor had complied with the statutory requirements for a receiving order by filing the statement of affairs and a statement of inability to pay. The absence of the Official Receiver on the hearing date, despite due notice, did not preclude the court from proceeding. The court was satisfied that the petition had merit and therefore issued the receiving order as prayed.
Court Disposition
Petition allowed; receiving order issued.
Orders
- A Receiving Order is issued in respect of the estate of Nileshchandra Vaghji Shah.
- A copy of the Receiving Order to be served upon the Official Receiver.
Full Case Text
Judgment text and source record
17 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL & TAX DIVISION
IN THE MATTER OF BANKRUPTCY CAUSE NO.14 OF 2013
(KANTILAL VAGHJI SHAH)
AND
IN THE MATTER OF BANKRUPTCY CAUSE NO.15 OF 2013
(NILESHCHANDRA VAGHJI SHAH
R U L I N G
Before Court is the Petition dated 15th August 2013 filed by NILESHCHANDRA VAGHJI SHAH (hereinafter referred to as “the debtor”) seeking that the Court issue a Receiving Order in respect of his estate.
This matter was consolidated with Petition No.14 of 2013 being the Petition of KANTILAL VAGHJI SHAH. The two were directors and equal shareholders in Bunyala Wholesalers Ltd. The said KANTILAL VAGHJI SHAHpassed away on 18th December 2017 at Watford General Hospital in the United Kingdom as evidenced by the certified copy of a Notification of Death Serial No.BBT 122414 issued on 19th December 2017. Subsequent to the death of one of the Petitioners this matter proceeded in respect of the surviving Petitioner NILESHCHANDRA VAGHJI SHAH.
The matter was set down for the preliminary hearing of the Petition on 20th July 2018. The hearing date was taken in presence of the Official Receiver. However on the stated hearing date there was no representative of the Official Receiver present in court to cross-examine the Debtor.
Mr. Nyakiangana for the Debtor urged the Court to issue the Receiving Order as prayed.
I have carefully perused the file. I note that the Statement of Affairs in respect of this debtor was filed in court on 19th September 2013. The Petitioner has also filed a statement of his inability to pay. The creditors value secured was Kshs.15,500,000/= whilst the book debts amount to Kshs.16,000,000/=.
I am satisfied that this Petition has merit and accordingly do issue the Receiving Order as prayed. A copy of the Receiving Order to be served upon the official Receiver.
Dated in Nairobi this 26th day of October 2018.
Justice Maureen A. Odero