[2006] KEHC 626 (KLR)
The court declined to issue a receiving order because the debtor failed to provide sufficient evidence of the existence of the alleged debts in her petition, statement of affairs, and affidavit. Additionally, the certificate of compliance from the official receiver was incomplete and did not demonstrate compliance...
Source-derived case information.
- Citation
- [2006] KEHC 626 (KLR)
- Parties
- Applicant: Joyce Imbulani Kidaha; Respondent: Official Receiver (Mrs. Josephine Ogola)
- Court
- High Court
- Court Station
- High Court at Kakamega
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause 1 of 2006
- Procedural Posture
- Bankruptcy Cause / Ruling on Debtor's Petition for Receiving Order
- Outcome
- petition for receiving order dismissed
- Legal Topics
- Bankruptcy Petition, Receiving Order, Statement of Affairs, Debtor Initiated Bankruptcy
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Joyce Imbulani Kidaha
Applicant
Official Receiver (Mrs. Josephine Ogola)
Respondent
Procedural Posture
Bankruptcy Cause / Ruling on Debtor's Petition for Receiving Order
Legal Issues
- 1 Whether the debtor has complied with statutory requirements for issuance of a receiving order under the Bankruptcy Act.
- 2 Whether the statement of affairs and supporting documents sufficiently establish the existence of debts.
- 3 Whether the certificate of compliance by the official receiver meets the requirements of section 16(1) of the Bankruptcy Act.
Ratio Decidendi
The court declined to issue a receiving order because the debtor failed to provide sufficient evidence of the existence of the alleged debts in her petition, statement of affairs, and affidavit. Additionally, the certificate of compliance from the official receiver was incomplete and did not demonstrate compliance with statutory requirements regarding payment of deposit and expenses. The court found that these deficiencies meant the statutory prerequisites for issuing a receiving order had not been met, and therefore exercised its discretion to refuse the order.
Court Disposition
petition for receiving order dismissed
Orders
- The court declines to issue a receiving order.
Full Case Text
Judgment text and source record
16 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT KAKAMEGA
Bankruptcy Cause 1 of 2006
IN THE MATTER OF BANKRUPTCY ACT CAP 53 LAWS OF KENYA
AND
IN THE MATTER OF JOYCE IMBULANI KIDAHA - DEBTOR
RULING
In her Petition dated 27. 11. 2006, the debtor, JOYCE IMBULANI KIDAHA, petitioned this court to make a receiving order adjudging her bankrupt on the ground that she has been unable to pay her debts. In her brief affidavit, the debtor verified and confirmed that the statement of affairs was true. The Statement of Affairs shows that the debtor has no property but is indebted to several creditors one of whom (Nelson Mulanda) is owed Shs.326,000/= in respect of which there is a court decree. The reference of the court case in which the decree was issued was not stated in the Petition, or in the Statement of Affairs or in the Affidavit by the debtor and these documents do not offer any evidence to show that the debts alleged do exist.
The Certificate of Compliance signed by (Mrs.) Josephine Ogola for official Receiver is incomplete and does not show what amount, if any, of deposit and official receiver’s expenses has been paid.
Under section 3(f) of the Bankruptcy Act, Cap 53, a person is deemed to have committed an act of bankruptcy if he files in the court a declaration of his inability to pay his debts or presents a bankruptcy petition against himself.
- 2 -
On presentation, a bankruptcy petition is deemed to be an act of bankruptcy without previous filing by the debtor of any declaration of inability to pay his debts. However, the court is entitled to refuse to issue a receiving order where the debtor has failed to file with the official receiver his statement of affairs and to pay deposit and expenses of the latter.
The Certificate of compliance dated 27th November, 2006 by the official Receiver does not appear to be in conformity with section 16(1) of the Bankruptcy Act.
For these reasons, I decline to issue a Receiving order.
Dated at Kakamega this 6th day of December, 2006.
G. B. M. KARIUKI
J U D G E