[2023] KEHC 21038 (KLR)
The court found that the applicant had established that Multiple Solutions Ltd was indebted in the sum of USD 109,038, which had remained unpaid for over 90 days despite statutory notice. The respondent company was duly served with the petition and did not oppose it or file any response. The applicant, as a...
Source-derived case information.
- Citation
- [2023] KEHC 21038 (KLR)
- Parties
- Applicant: Globe Trotters Limited; Respondent: Multiple Solutions Ltd
- Court
- High Court
- Court Station
- High Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause E002 of 2023
- Procedural Posture
- Insolvency Cause / Ruling on Liquidation Petition and Appointment of Interim Liquidator
- Outcome
- Liquidation order granted; official receiver appointed as interim liquidator; further directions issued.
- Judges
- DKN Magare
- Legal Topics
- Company Liquidation, Creditor Petition, Insolvency Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Globe Trotters Limited
Applicant
Multiple Solutions Ltd
Respondent
Procedural Posture
Insolvency Cause / Ruling on Liquidation Petition and Appointment of Interim Liquidator
Legal Issues
- 1 Whether Multiple Solutions Ltd is unable to pay its debts as required under the Insolvency Act.
- 2 Whether the applicant is entitled to a liquidation order against the respondent company.
- 3 Whether an interim liquidator should be appointed pending further orders of the court.
Ratio Decidendi
The court found that the applicant had established that Multiple Solutions Ltd was indebted in the sum of USD 109,038, which had remained unpaid for over 90 days despite statutory notice. The respondent company was duly served with the petition and did not oppose it or file any response. The applicant, as a creditor, was entitled to petition for liquidation under the Insolvency Act. The court was satisfied that the requirements for liquidation had been met and that the appointment of an interim liquidator was necessary to preserve the assets of the company pending further orders. Accordingly, the court granted a liquidation order against Multiple Solutions Ltd, appointed the official...
Court Disposition
Liquidation order granted; official receiver appointed as interim liquidator; further directions issued.
Orders
- A liquidation order is issued against Multiple Solutions Limited.
- The official receiver is constituted as the interim liquidator.
Full Case Text
Judgment text and source record
22 paragraphs
In re Multiple Solutions Ltd (Insolvency Cause E002 of 2023) [2023] KEHC 21038 (KLR) (25 July 2023) (Ruling)
Neutral citation: [2023] KEHC 21038 (KLR)
Republic of Kenya
In the High Court at Mombasa
Insolvency Cause E002 of 2023
DKN Magare, J
July 25, 2023
IN THE MATTER OF MULTIPLE SOLUTIONS LTD AND IN THE MATTER OF THE INSOLVENCY ACT NO. 15 OF 2015 AND IN THE MATTER OF AN APPLICATION BY GLOBE TROTTERS LIMITED
Ruling
1. The Applicant filed a petition dated February 6, 2023 seeking liquidation of multiple solutions ltd. The debt due to the Applicant, Globe Trollers Limited is said to be a sum of USD 109,038. The Respondent company is a company registered in Kenya under certificate No C.161783, having been incorporated on September 22, 2008. Its share capital is Ksh 1,000,000 divided into 100 shares of 10,000/= each.
2. The Respondent is said to be indebted to a sum of USD as at May 19, 2022. A statutory notice was issued on May 19, 2022. This petition was subsequently filed on February 8, 2023 and served on multiple solutions limited on February 22, 2023. The petition that the respondent company multiple solutions limited has been unable to pay debts is made under section 424(1) of Insolvency Act, 2015.
3. No response was filed. I have perused a statement marked as HBS 4 and note that the said amount of USD 109, 038 is admitted to be due for over 90 days. The Applicant is qualified to make the order by virtue of being a creditor under Section 425 (1) b of the Insolvency Act.
4. I have read the petition and the verifying affidavit in support. I have also read the affidavits of service and I note, prima facie that the Respondent company was duly served and did not oppose the petition.
5. The debt is due and owing and has been outstanding despite notices and service of the insolvency notice upon the Debtor company. I have no reason to doubt the veracity of the documents showing indebtedness and service of notice.
6. I therefore allow the application for appointment of an interim liquidator under Section 427 (1) c, of the Insolvency Act.
7. Further an order of liquidation is hereby issued against multiple solution limited placing an interim liquidation pending further orders of the court. I also directed that it be notified for purposes of section 429 of these always Act that there shall be no disposal of all income and assets of the company without a court order to that effect.
8. The applicants are to indicate to the court within the next 14 days, a person qualified to be appointed liquidator. In the meantime, and the interim the official receiver is constituted as the interim Liquidator forthwith.
9. This order shall be served physically and in the two newspapers of Nationwide circulation in the next 7 days the matter shall be mentioned within 14 days to confirm lodging of the order with the Official Receiver, the Registrar and Appointment of the interim Liquidator till the Court otherwise directs.
10. The effect of this order is that the meantime cease to have powers to act on behalf of the company unless they challenge this order.
11. The Insolvency Act provides that act provides and the official receiver may require search records and statement as contemplated under Section 433 of the Insolvency Act in the same shall be complied without fail in the matter has been mentioned during the location on 14th of August it is ordered.
Determination 12. The upshot of the foregoing is that I make the following orders: -a.The court hereby issues an liquidation order against Multiple Solutions Limited’b.The official receiver be constituted as the liquidator.c.The applicate to indicate, in the next 14 days, a person to be appointed as a liquidator.d.This order shall be served physically and in the two newspapers of Nationwide circulation in the next 7 days the matter shall be mentioned within on August 14, 2023 to confirm lodging of the order with the Official Receiver, the Registrar and Appointment of the interim Liquidator till the Court otherwise directs.e.The matter be fixed for further directions
DELIVERED, DATED AND SIGNED AT MOMBASA ON THIS 25TH DAY OF JULY, 2023. KIZITO MAGAREJUDGE