[2010] KEHC 1473 (KLR)
The court declined to grant the receiving order sought by the petitioner because, upon review of the updated financial information—including evidence of new contracts and potential income through the petitioner's company—it was determined that the petitioner was not in a financial position that justified the...
Source-derived case information.
- Citation
- [2010] KEHC 1473 (KLR)
- Parties
- Petitioner: John N. Liboyi; Creditor: St. John’s College
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause 11 of 2010
- Procedural Posture
- Bankruptcy Cause / Ruling on Application for Receiving Order
- Outcome
- Receiving order declined; petition to be served upon creditors and fixed for hearing.
- Judges
- FI Koome
- Legal Topics
- Bankruptcy Petition, Receiving Order, Debtor Financial Disclosure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
John N. Liboyi
Petitioner
St. John’s College
Creditor
Procedural Posture
Bankruptcy Cause / Ruling on Application for Receiving Order
Legal Issues
- 1 Whether the petitioner is entitled to a receiving order in respect of his estate.
- 2 Whether the petitioner has provided sufficient and accurate financial information to warrant the court's discretion.
- 3 Whether the petition should be served upon creditors and fixed for hearing.
Ratio Decidendi
The court declined to grant the receiving order sought by the petitioner because, upon review of the updated financial information—including evidence of new contracts and potential income through the petitioner's company—it was determined that the petitioner was not in a financial position that justified the immediate issuance of a receiving order. The court emphasized the necessity for full and accurate financial disclosure and found that the petition should be served upon creditors and fixed for hearing, allowing creditors an opportunity to respond and for the matter to be fully ventilated before any further orders are made.
Court Disposition
Receiving order declined; petition to be served upon creditors and fixed for hearing.
Orders
- The petition shall be served upon the creditors.
- Steps shall be taken to fix the petition for hearing.
Full Case Text
Judgment text and source record
15 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Bankruptcy Cause 11 of 2010
JOHN N. LIBOYI .................................................................. PETITIONER
RULING
1. The Petitioner sought for a receiving order be made in respect of his estate.He filed a petition on 10th March 2010 and when the matter came up for hearing Kimaru J. made the following order:-
“I have perused thefile in which the debtor wishes to secure indulgence from this court.It is clear that he debtor is abusing the process of this court.He has refused to place all the information necessary to enable this court exercise discretion in his favour.Unless the debtor avails proper accurate and detailed information of his financial status to the official receiver, no orderscan be issued by this court.”
2. The debtor filed an affidavit sworn on 21stMay 2010 .He has given the details of how he incurred a debt and a judgment was entered against him.The creditor is
St. John’sCollegeand the debt was in respect of school fees incurred for a child born out of wedlock.He proposes to pay the debt by paying Ksh.5,000/- per month.The outstanding debt is 1. 350,000/-.He has given information regarding the place where he lives which is a house inNairobibeing Nairobi/Block 91146 which is registered in his name and his wife.He also annexed accounts for a company where he is a share holder and director called Information Professional Africa Limited.A bank statement for his personal account and that of the company.
3. The official receiver has also compiled a further interim report on the financial affaires of the petitioner.as a way forward the petitioner proposes to pay Ksh.150,000/- every three months because the petitioner’s company has just worn a contract to provide consultant services for Kenya Power and Lighting Company Limited.He annexed a copy of the contract which shows that the company will be earning periodical payment to be used to pay the debt.The petitioner’s company has also been prequalified by Kenya National Highways Authority to provide ICT Consulting Services.Mr. Encok Mugere on behalf of the official receiver recommendsthat a receiving order be issued against the estate of the petitioner or the petition be fixed for hearing.
4. I have considered the order by justice Kimaru J and the further information that has been availed by the petitioner including the report by the official receiver.In the view of the financial circumstances reviewed especially the contracts that the petitioner is engaged in through his company it is not suitable to grant the receiving order that is sought .The petition should be served upon the creditors and steps be taken to fix it for hearing.It is so ordered.
RULING READ AND SIGNED ON 2ND JULY 2010 ATNAIROBI.
M.K. KOOME
JUDGE