[2008] KEHC 2247 (KLR)
The court found that the debtor failed to comply with the requirements of the Bankruptcy Act by not properly conducting his affairs and failing to disclose all properties and dealings. The court was satisfied that the application to rescind the Receiving Order was merited, as the debtor's conduct undermined the...
Source-derived case information.
- Citation
- [2008] KEHC 2247 (KLR)
- Parties
- Applicant: Rhoda Rutto; Respondent: Robert Kumu Komu
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause 123 of 2006
- Procedural Posture
- Bankruptcy Cause / Ruling on Application to Rescind Receiving Order
- Outcome
- application allowed; receiving order rescinded
- Legal Topics
- Bankruptcy Proceedings, Receiving Orders, Debtor Obligations
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Rhoda Rutto
Applicant
Robert Kumu Komu
Respondent
Procedural Posture
Bankruptcy Cause / Ruling on Application to Rescind Receiving Order
Legal Issues
- 1 Whether the Receiving Order dated 7th November, 2006 against the estate of Robert Kumu Komu should be rescinded.
- 2 Whether the debtor has abused the bankruptcy process to evade litigation and debt repayment.
- 3 Whether the debtor failed to disclose all properties and dealings as required by law.
Ratio Decidendi
The court found that the debtor failed to comply with the requirements of the Bankruptcy Act by not properly conducting his affairs and failing to disclose all properties and dealings. The court was satisfied that the application to rescind the Receiving Order was merited, as the debtor's conduct undermined the integrity of the bankruptcy process. The court exercised its discretion to rescind the Receiving Order to prevent abuse of the bankruptcy system and to ensure justice between the parties.
Court Disposition
application allowed; receiving order rescinded
Orders
- The Receiving Order issued by this court on the 7th November, 2006 is hereby rescinded forthwith.
Full Case Text
Judgment text and source record
28 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS) Bankruptcy Cause 123 of 2006
IN THE MATTER OF BANKRUPCY ACT
(CAP 53 OF THE LAWS OF KENYA)
RE: ROBERT KUMU KOMU
RULING
The application Notice of Motion dated 6th February, 2008 is seeking orders:-
1. THAT this honourable court rescind the Receiving Order dated 7th November, 2006 made against the estate of the debtor ROBERT KUMU KOMU.
2. THAT this honourable court do grant any order or further orders or relief as it deems fit and just to grant in the circumstances.
3. THAT the debtor herein do pay the costs of this application.
The grounds cited on the face of the application are:-
1. THAT the debtor has is taking advantage of the Receiving Order to evade further litigation and repayments of his debts.
2. THAT the debtor fraudulently refused to disclose all of his properties and dealings to defeat justice.
3. THAT the debtor has failed to conduct his affairs and dealings as is required by the Official Receiver.
The application is supported by the supporting affidavit of RHODA RUTTO dated 6th February, 2008. I have considered the contents of this affidavit.
There is a replying affidavit of ROBERT KUMU KOMU the petitioner/Debtor, sworn on the 27th May, 2008. The gist of the replying affidavit is to show that the creditor in this matter has a stable salary and is employed while the petitioner is self-employed. The Petitioner also avers that the creditor has equal duty as parent of their child to take responsibility for the Child’s needs.
The Petitioner also denies using Bankruptcy to either evade the court process or to pay his debts. M/s Kahura argued the application for the Official Receiver. The Petitioner did not appear for the hearing of the application despite service with a hearing notice.
I have considered application together with the affidavit in support and the replying affidavit. Section 100of theBANKRUPTCY ACTprovides that once a Receiving Order is made, a Debtor should run his affairs in compliance with the Act.
I am satisfied that the application is merited in the circumstances and should be allowed. I have allowed the application dated 6th February, 2008 in the following terms:
1) The Receiving order issued by this court on the 7th November, 2006 be and is hereby rescinded forthwith.
Those are the orders of the Court.
Dated at Nairobi this 20th day of June, 2008.
LESIIT, J.
JUDGE
Read, signed and delivered in the presence of:
N/A for Mrs. Kahuria for official receiver
N/A for Mr. Mugo for the debtor
LESIIT, J.
JUDGE