[2013] KEHC 3107 (KLR)
The court found that the applicant was not truthful in her statement of affairs, having previously declared substantial assets and property in loan applications to various financial institutions. The evidence showed she had sufficient property to sell and repay her debts, contrary to her claim of being worth only...
Source-derived case information.
- Citation
- [2013] KEHC 3107 (KLR)
- Parties
- Applicant: Christine Akinyi Otieno
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause 4 of 2013
- Procedural Posture
- Bankruptcy Cause / Ruling
- Outcome
- application dismissed
- Legal Topics
- Bankruptcy Proceedings, Insolvency, Debtor Solvency, Receiving Orders
- Source Language
- english
Source-derived case record
Summary, issues, holding and outcome
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Parties
Christine Akinyi Otieno
Applicant
Procedural Posture
Bankruptcy Cause / Ruling
Legal Issues
- 1 Whether the applicant is entitled to a receiving order under section 16(2) of the Bankruptcy Act.
- 2 Whether the applicant is insolvent and unable to pay her debts as claimed.
Ratio Decidendi
The court found that the applicant was not truthful in her statement of affairs, having previously declared substantial assets and property in loan applications to various financial institutions. The evidence showed she had sufficient property to sell and repay her debts, contrary to her claim of being worth only Kshs.74,900. The court held that the applicant was not genuinely insolvent and was attempting to misuse bankruptcy proceedings to avoid repaying her creditors. As a result, the application for a receiving order was dismissed.
Court Disposition
application dismissed
Orders
- The application for a receiving order is dismissed.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA
HIGH COURT AT KISUMU
BANKRUPTCY CAUSE NO. 4 OF 2013
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CHRISTINE AKINYI OTIENO ….....................................DEBTOR/APPLICANT
R U L I N G
The applicant has applied under section 16(2) of the Bankruptcy Act (Cap.53) for a receiving order to be issued against her. She states that she has accumulated outstanding debts of Kshs.1,318,800/= which has forced his creditors to pursue, hound and intimidate her to the extend that she no longer resides in her house and has been forced to separate from her family. She has sworn that the debt is against her property that is worth Kshs.74,900/=.
However, I have looked at her statement of affairs. When she applied for loan of Kshs.1,000,000/= from Kisumu Centre Jua Kali Artisan Sacco she indicated that she had a shop that had stock worth Kshs.500,000/=, capital investment worth Kshs.900,000/=, a canter, ice plant 3 fridges and her daily sales averaged Kshs.40,000/=. She then had
Kshs.300,000/= in shares held in the sacco. She declared the value of the canter to be Kshs.500,000/=, the ice plant, to be Kshs.200,000/= and a container shop to be worth Kshs.150,000/=.
When she went to Jamii Bora Bank Limited for a loan of Kshs.200,000/= she offered 20% cash cover and chattels mortgage over her household items as security. At Co-operative Bank she sought a loan and signed a chattels mortgage. She declared her chattels to be worth Kshs.416,000/=.
In short, the applicant has not been truthful in stating that she is worth only Kshs.74,900/=. She has sufficient property to sell and repay the debt she wants to run away from. The application is dismissed.
Dated, signed and delivered this 27th day of May 2013
A. O. MUCHELULE
J U D G E
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