[2020] KEHC 9486 (KLR)
The court found that Joyce Mwangi Wangechi was unable to pay her debts as evidenced by her statement of affairs and oral testimony. The debts arose from the collapse of her business, which was affected by external events beyond her control. The court applied section 32(1) of the Insolvency Act, 2015, which entitles...
Source-derived case information.
- Citation
- [2020] KEHC 9486 (KLR)
- Parties
- Applicant: Joyce Mwangi Wangechi; Respondent: Starke Ayres (K) Limited; Respondent: Greenlife Crop Protection Africa Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause E010 of 2019
- Procedural Posture
- Insolvency Petition / Judgment
- Outcome
- bankruptcy order granted
- Judges
- DAS Majanja
- Legal Topics
- Personal Bankruptcy, Insolvency Proceedings, Debtor Initiated Petition
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Joyce Mwangi Wangechi
Applicant
Starke Ayres (K) Limited
Respondent
Greenlife Crop Protection Africa Limited
Respondent
Procedural Posture
Insolvency Petition / Judgment
Legal Issues
- 1 Whether the debtor is unable to pay her debts as required under section 32(1) of the Insolvency Act, 2015.
- 2 Whether the court should issue a bankruptcy order against the debtor's estate.
Ratio Decidendi
The court found that Joyce Mwangi Wangechi was unable to pay her debts as evidenced by her statement of affairs and oral testimony. The debts arose from the collapse of her business, which was affected by external events beyond her control. The court applied section 32(1) of the Insolvency Act, 2015, which entitles a debtor to seek a bankruptcy order if unable to pay debts. Satisfied that the statutory requirements were met, the court adjudged the debtor bankrupt and appointed the Official Receiver as trustee of her estate.
Court Disposition
bankruptcy order granted
Orders
- Joyce Wangechi Mwangi is adjudged bankrupt and a bankruptcy order is made against her estate.
- The Official Receiver (or a person nominated by the Official Receiver) is appointed as Bankruptcy Trustee in respect of the debtor’s property.
Full Case Text
Judgment text and source record
27 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI LAW COURTS
COMMERCIAL AND TAX DIVISION
INSOLVENCY PETITION NO. E010 OF 2019
CORAM: D. S. MAJANJA J.
IN THE MATTER OF THE INSOLVENCY ACT, 2015
AND IN THE MATTER OF
JOYCE MWANGI WANGECHI T/A JAJO ENTERPRISES (A DEBTOR)
JUDGMENT
1. Joyce Mwangi Wangechi (“the Debtor”) was at all material times a partner with her husband, James Mwangi Nderitu a business trading as Jajo Enterprises. She has brought the petition dated 25th July 2019 seeking that a Bankruptcy Order be made in respect of her estate or that she be adjudged bankrupt.
2. The Debtor’s husband also filed HC Insolvency Cause No. E011 of 2019 in which he sought a Bankruptcy Order. The business was trading in agrovet products. The partnership incurred debts amounting to Kshs. 9,795,370. 00when the business collapsed due to the 2007 post-election violence and subsequent loss of their tomato crops to pests. I heard the testimony of the Debtor. She is a housewife although she assists in running a local community based organization where she earns Kshs. 15,000. 00 which she uses for her upkeep and her children.
3. Under section 32(1) of the Insolvency Act, 2015, a debtor is entitled to apply to be adjudged bankrupt on the grounds that he or she is unable to pay his or her debts. I have considered her statement of affairs and her evidence and I am satisfied that the Debtor is unable to pay her debts.
4. I therefore make the following orders:
(a) JOYCE WANGECHI MWANGI be and is hereby adjudged bankrupt and a bankruptcy order is made against her estate.
(b) The Official Receiver (or a person nominated by the Official Receiver) is hereby appointed to be the Bankruptcy Trustee in respect of the Debtor’s Property.
(c) Cost of the petition shall be borne out of the Debtor’s estate.
DATED and DELIVERED at NAIROBI this 30th day of MARCH 2020.
D. S. MAJANJA
JUDGE
ORDER
In view of the declaration of measures restricting court operations due to the COVID-19 pandemic and in light of the directions issued by his Lordship, the Chief Justice on 15th March 2020, this ruling has been delivered to the parties online with their consent. They have waived compliance with Order 21 rule 1 of the Civil Procedure Rules which requires that all judgments and rulings be pronounced in open court.
D. S. MAJANJA
JUDGE
Court Assistant: Mr. M. Onyango.
Mr Waweru instructed Guandaru Thuita and Company Advocates for the Debtor.
Mr Kabugu instructed by Wainaina Ireri Advocates LLP for Creditor (Starke Ayres (K) Limited) and also instructed by Gatore Jay and Company Advocates for Creditor (Greenlife Crop Protection Africa Limited)