[2023] KEHC 1187 (KLR)
The court found that the respondent had failed to respond to the application or attend court despite proper service. The applicant demonstrated that the respondent, through its directors, shareholders, and associated companies, was attempting to frustrate enforcement of the arbitral award by concealing or...
Source-derived case information.
- Citation
- [2023] KEHC 1187 (KLR)
- Parties
- Applicant: Instacon East Africa Limited; Respondent: Haussmann Group Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Arbitration Cause 005 of 2020
- Procedural Posture
- Arbitration Cause / Ruling on Unopposed Notice of Motion Application for Enforcement and Lifting of Corporate Veil
- Outcome
- Application allowed as unopposed; orders granted as sought by the applicant.
- Judges
- DO Chepkwony
- Legal Topics
- Arbitration Enforcement, Lifting Corporate Veil, Judgment Debtor Liability, Joinder of Parties
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Instacon East Africa Limited
Applicant
Haussmann Group Limited
Respondent
Procedural Posture
Arbitration Cause / Ruling on Unopposed Notice of Motion Application for Enforcement and Lifting of Corporate Veil
Legal Issues
- 1 Whether the applicant is entitled to enforcement of the arbitral award against the respondent and its associated companies and directors.
- 2 Whether the corporate veil should be lifted to attach the assets of the respondent's directors, shareholders, and associated companies to satisfy the decretal amount.
- 3 Whether the respondent and its associates should be orally examined and compelled to produce documents regarding their assets.
Ratio Decidendi
The court found that the respondent had failed to respond to the application or attend court despite proper service. The applicant demonstrated that the respondent, through its directors, shareholders, and associated companies, was attempting to frustrate enforcement of the arbitral award by concealing or dissipating assets. The court held that this conduct justified lifting the corporate veil to allow the applicant to pursue enforcement against the respondent's directors, shareholders, and associated companies. The court further ordered the joinder of the associated companies and individuals, attachment and restriction of dealings with identified property, and oral examination of the...
Court Disposition
Application allowed as unopposed; orders granted as sought by the applicant.
Orders
- The respondent's directors, shareholders, and associated companies (Muteero Property Limited, Haussmann Engineering Services Limited, Afrigroup Kenya Limited, Etc Interiors Limited, Haussmann Group Africa) are enjoined in the proceedings for purposes of lifting the corporate veil and attaching their assets to...
- Muteero Property Limited is restrained from dealing with, selling, or transferring property L.R. No. 7553/189 (ORIG. No. 77583/187/2) in Karen-Nairobi worth KES 110,000,000.
Full Case Text
Judgment text and source record
21 paragraphs
Instacon East Africa Limited v Haussmann Group Limited (Arbitration Cause 005 of 2020) [2023] KEHC 1187 (KLR) (Commercial and Tax) (14 February 2023) (Ruling)
Neutral citation: [2023] KEHC 1187 (KLR)
Republic of Kenya
In the High Court at Nairobi (Milimani Commercial Courts Commercial and Tax Division)
Commercial and Tax
Arbitration Cause 005 of 2020
DO Chepkwony, J
February 14, 2023
Between
Instacon East Africa Limited
Applicant
and
Haussmann Group Limited
Respondent
Ruling
1. The matter came up for mention on February 7, 2023 for parties to confirm compliance with regard to filing of written submissions in respect of the application dated March 14, 2022. The same is Notice of Motion application in which the applicant has sought for several orders as against the respondent.
2. The respondent has not filed a response to the said application and neither has there been attendance on its part, despite service and communication over the same having been effected by the applicant’s counsel and the respondent’s former counsel as will be deciphered from the proceedings.
3. In view of this, the application is unopposed and as sought by the applicant,the Notice of Motion application dated March 14, 2022 be and is hereby allowed in the following terms:-a.Spent;b.Spent;c.That the respondents Directors/Shareholders and associates web if Companies with common Shareholding/ Directorship vis as follows;Muteero Property LimitedHaussmann Engineering Services LimitedAfrigroup Kenya LimitedEtc Interiors LimitedHaussmann Group AfricaAre hereby enjoined in the proceedings for purposes of lifting the Corporate Veil of the corporate and the Directors/Shareholders with a view to attaching and selling their movable and immovable properties so as to satisfy the decretal amount due herein.d.That Muteero Property Limitedbe and is hereby stopped from dealing/selling or transferring property L.R. No.7553/189 (ORIG. No.77583/187/2) measuring 0. 4233 Hectares in the prime area of Karen-Nairobi worth Kenya Shillings One Hundred Ten Million (Kshs.110,000,000/=).e.That a Notice to Show Cause to issue against the Respondent, its Directors/Shareholders and associate web of Companies.f.That the Corporate Veil of the Judgment Debtor and/or its Directors/Shareholders and its associated web of Companies listed hereinabove be and is hereby lifted to enable the Applicant Company enforce their Judgments.g.Summons to issue upon one Greguire Victor Schenebig, Alisa Roskach Tsymbaland Haussmann Group Africa, Directors/Shareholders of the Judgment Debtor’s Company and in common with the associate web of Companies hereinabove for purposes of;i.being orally examined on oath with regard to their means and assets;ii.producing books, papers, documents and or evidence showing the state of affairs of the Companies.
Failure to which;i.the said Directors/Shareholders and the foresaid Companies is jointly and or severally held personally liable to satisfy the decree of the court in full.ii.the Decree-Holder is granted leave to execute the decree herein as against the said Directors/Shareholders/ and the Companies aforesaid/ of the Judgment-Debtor herein personally, in default of payment of the decretal amount claimed herein.iii.The Decree-Holder is granted leave to execute the decree herein against the following associate web of Companies associated with and having common shareholding/ Directorship with the Judgment-Debtor herein personally in default of payment of the decretal amount claimed herein.h.Mention on March 20, 2023 for parties to confirm compliance and take further directions.Notice to issue upon the respondent and or their counsel, if any.
It is so ordered.
RULING DELIVERED VIRTUALLY, DATED AND SIGNED AT NAIROBI THIS 14TH DAY OF FEBRUARY, 2023. D. O. CHEPKWONYJUDGEIn the presence of:M/S Dale counsel for ApplicantNo appearance for and by RespondentCourt Assistant - Sakina