[2024] KEHC 9938 (KLR)
The court found that there was no actual bias in the previous ruling, as the judge merely described the facts and conduct of the parties as they appeared from the evidence. However, to avoid any perception of partiality and to maintain public confidence in the administration of justice, the judge decided to recuse...
Source-derived case information.
- Citation
- [2024] KEHC 9938 (KLR)
- Parties
- Applicant: Cyton High Yield Solution LLP; Respondent: Cyton Investment Partners Fifteen LLP
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Insolvency Petition E063 of 2021
- Procedural Posture
- Insolvency Petition / Ruling on Application for Recusal of Judge
- Outcome
- Application for recusal is moot; judge recuses himself and allocates the matter to another judge.
- Judges
- A Mabeya
- Legal Topics
- Judicial Recusal, Insolvency Administration, Liquidation Orders
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Cyton High Yield Solution LLP
Applicant
Cyton Investment Partners Fifteen LLP
Respondent
Procedural Posture
Insolvency Petition / Ruling on Application for Recusal of Judge
Legal Issues
- 1 Whether the judge should recuse himself from further handling the matter due to alleged bias arising from previous rulings.
- 2 Whether the description of the promoters' conduct in prior rulings constitutes bias warranting recusal.
Ratio Decidendi
The court found that there was no actual bias in the previous ruling, as the judge merely described the facts and conduct of the parties as they appeared from the evidence. However, to avoid any perception of partiality and to maintain public confidence in the administration of justice, the judge decided to recuse himself. The application for recusal was therefore rendered moot, and the matter was allocated to another judge for further handling. No order as to costs was made.
Court Disposition
Application for recusal is moot; judge recuses himself and allocates the matter to another judge.
Orders
- The application for recusal is rendered moot.
- The matter is allocated to Dr. Mugambi J for further handling.
Full Case Text
Judgment text and source record
15 paragraphs
In re Cytonn Investment Partners Fifteen LLP (Insolvency Petition E063 of 2021) [2024] KEHC 9938 (KLR) (Commercial and Tax) (31 July 2024) (Ruling)
Neutral citation: [2024] KEHC 9938 (KLR)
Republic of Kenya
In the High Court at Nairobi (Milimani Commercial Courts)
Commercial and Tax
Insolvency Petition E063 of 2021
A Mabeya, J
July 31, 2024
Ruling
1. This is a ruling on the application by Cyton High Yield Solution LLP dated 11/3/2024 for my recusal. It is brought under Order 51 of the Civil Procedure Rules Section 1A, B, and 3A of the CPA and Articles 50 and 159 (2) of the Constitution.
2. The ground for my recusal is that in my ruling of 30/11/2023, I held that the promoters of Cyton and the affiliate companies were involved in a scheme akin to fraud.
3. It is not disputed that the two companies that this Court ordered that they be liquidated had taken in excess of Kshs. 14B from members of the public for alleged investment. It later occurred that the two companies would then “lend” the said funds to its affiliate companies for investment. When the time came for the investors to recoup their monies there was none to be paid. The two companies took refuge in Administration. The Administrator recouped zero shillings after 1 year of administration. I do not know how I should have described that arrangement.
4. I have considered the application. I see no bias in my subject ruling. I only described the transaction as it were. There is nothing to warrant my recusal. But to give the promoters of Cyton and affiliate companies the comfort of vetting their cases before the seat of justice, I will step aside.
5. In this regard, the application is moot. I allocate the matter to Dr. Mugambi J to continue handling the same up to its logical conclusion. I make no order as to costs.It is so ordered.
DATED AND DELIVERED AT NAIROBI THIS 31ST DAY OF JULY, 2024. A. MABEYA, FCI ArbJUDGE