[2019] KEHC 9535 (KLR)
The court found that Eldoret Mattresses Limited is unable to meet its financial obligations, as evidenced by the significant disparity between its assets and liabilities. The directors' resolution for voluntary liquidation and the appointment of the Official Liquidator were in accordance with the Insolvency Act...
Source-derived case information.
- Citation
- [2019] KEHC 9535 (KLR)
- Parties
- Applicant: Milankumar Somchand Karniya; Applicant: Kailesh Somchand; Respondent: Eldoret Mattresses Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause E007 of 2019
- Procedural Posture
- Insolvency Petition / Judgment
- Outcome
- petition for liquidation granted; company declared insolvent and placed under interim liquidation.
- Judges
- MM Kasango
- Legal Topics
- Company Liquidation, Insolvency Proceedings, Voluntary Winding Up
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Milankumar Somchand Karniya
Applicant
Kailesh Somchand
Applicant
Eldoret Mattresses Limited
Respondent
Procedural Posture
Insolvency Petition / Judgment
Legal Issues
- 1 Whether Eldoret Mattresses Limited should be placed under liquidation due to insolvency.
- 2 Whether the Official Liquidator should be appointed as liquidator of the company.
Ratio Decidendi
The court found that Eldoret Mattresses Limited is unable to meet its financial obligations, as evidenced by the significant disparity between its assets and liabilities. The directors' resolution for voluntary liquidation and the appointment of the Official Liquidator were in accordance with the Insolvency Act 2015. The court determined that it was just and equitable to grant the orders sought, placing the company under interim liquidation and appointing the Official Liquidator to take over management. No orders as to costs were made.
Court Disposition
petition for liquidation granted; company declared insolvent and placed under interim liquidation.
Orders
- Eldoret Mattresses Limited is declared insolvent and placed under interim liquidation.
- The Official Liquidator shall immediately take over the management of the company.
Full Case Text
Judgment text and source record
23 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL AND ADMIRALTY DIVISION-MILIMANI
INSOLVENCY PETITION NO. E007 OF 2018
IN THE MATTER OF ELDORET MATTRESSES LIMITED
AND
IN THE MATTER OF THE INSOLVENCY ACT 2015.
J U D G M E N T
1. Before me is a petition for voluntary liquidation of the company ELDORET MATTRESSES LIMITED (the company).
The petition is filed by the Directors of the company, namely, Milankumar Somchand Karniya and Kailesh Somchand. They are the only two Directors of the Company. The petition was certified ready for hearing by the Deputy Registrar on 12th November 2018.
2. The Directors passed a resolution on 24th September 2018 to seek liquidation of the company. They also resolved, on that date, that the Official Liquidator be appointed as Liquidator of the company.
3. In the petition, it is stated that the company’s assets total Kshs. 93,100,000 while its debts total Kshs. 271,970,570. 50. The company, therefore, seeks liquidation because of its indebtness and inability to meet its financial obligations to creditors, suppliers and employer.
4. Having considered the petition and the supporting documents attached thereof, I form the opinion that it is just to grant the orders sought. Accordingly, I make the following orders:-
a. The company ELDORET MATTRESSES LIMITED is hereby declared insolvent and is hereby placed under interim liquidation.
b. The official Liquidator shall immediately take over the management of the company.
c. There shall be no orders as to costs.
DATED, SIGNED and DELIVERED at NAIROBI this5thday of MARCH,2019.
MARY KASANGO
JUDGE
Judgment ReadandDeliveredinOpen Courtin the presence of:
..............………………………COURT ASSISTANT
......................……………… COUNSEL FOR THE APPLICANT
...................………………….COUNSEL FOR THE COMPANY