[2021] KEHC 12555 (KLR)
The court found that the respondent company had been dormant for over 15 years and had not held any statutory meetings since incorporation. The petitioner demonstrated compliance with procedural requirements, including service of the petition and advertisement in a national newspaper. The respondent did not oppose...
Source-derived case information.
- Citation
- [2021] KEHC 12555 (KLR)
- Parties
- Petitioner: Kinyua John; Respondent: Aljazeera Channel Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause E030 of 2020
- Procedural Posture
- Insolvency Petition / Ruling on Unopposed Liquidation Petition
- Outcome
- petition allowed; company ordered liquidated
- Judges
- WA Okwany
- Legal Topics
- Company Liquidation, Insolvency Proceedings, Dormant Company, Court Powers Under Insolvency Act
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kinyua John
Petitioner
Aljazeera Channel Limited
Respondent
Procedural Posture
Insolvency Petition / Ruling on Unopposed Liquidation Petition
Legal Issues
- 1 Whether the respondent company should be liquidated for dormancy and failure to hold statutory meetings.
- 2 Whether the requirements for service and notice of the petition were satisfied.
Ratio Decidendi
The court found that the respondent company had been dormant for over 15 years and had not held any statutory meetings since incorporation. The petitioner demonstrated compliance with procedural requirements, including service of the petition and advertisement in a national newspaper. The respondent did not oppose the petition or appear in court. The court, therefore, exercised its power under Section 424(1)(c) of the Insolvency Act to order the liquidation of the company, as the statutory grounds for liquidation were satisfied and due process had been followed.
Court Disposition
petition allowed; company ordered liquidated
Orders
- The respondent company, Aljazeera Channel Limited, is hereby liquidated under Section 424(1)(c) of the Insolvency Act.
- The petition is allowed as prayed.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL AND TAX DIVISION
INSOLVENCY PETITION NO. E030 OF 2020
IN THE MATTER OF ALJAZEERA CHANNEL LIMITED
KINYUA JOHN.............................................................................................................PETITIONER
-VERSUS-
ALJAZEERA CHANNEL LIMITED.......................................................................RESPONDENT
RULING
1. Through the Liquidation Petition dated 10th September 2020, the Petitioner seeks orders to liquidate the Respondent/Company on the basis that the Company has not held a shareholder’s or directors’ meeting since its incorporation on 21st June 2005.
2. The Petitioner’s case is that since the Company has been dormant for over 15 years, it should be liquidated under Section 424(1) (c) and (g) and Section 425 of the Insolvency Act.
3. The Petition was not opposed by the Company and when it came up for hearing on 17th December 2020 the Petitioner’s counsel urged the court to allow it as prayed.
4. I have perused the affidavit of service dated 14th December 2020 and the advertisement contained in the Daily Nation Newspaper of 19th November 2020. I am satisfied that the Respondent was duly served with the Petition and the hearing notice. In the absence of any objection to the Petition, I hereby invoke this court’s power under Section 424(1) (c) of the Insolvency Act and allow the Petition as prayed.
Dated, signed and delivered via Microsoft Teams at Nairobi this 14th day of January 2021in view of the declaration of measures restricting court operations due to Covid -19 pandemic and in light of the directions issued by his Lordship, the Chief Justice on the 17th April 2020.
W. A. OKWANY
JUDGE
In the presence of:
Mr. Kuyo for Petitioner
Court Assistant: Sylvia.