https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/8120
The court found that the long-running succession dispute could not be resolved through piecemeal release of estate funds. Because the beneficiaries were known and funds were available, the administrators were directed to file a schedule of beneficiaries and mode of distribution, while the banks and other holders of...
Source-derived case information.
- Citation
- [2026] KEHC 8120 (KLR)
- Parties
- Applicant: Manohar Lata Gulati; 1st Respondent: Satya Bhama Gandhi; 2nd Respondent: Rohit Kumar Gandhi; 3rd Respondent: Sanjay Gandi & 2 Others; 4th Respondent: Kcb Bank Ltd; 1st Garnishee: Absa Bank Kenya Plc; 2nd Garnishee: Middle East Bank Kenya Ltd; 3rd Garnishee: Bank Of India (Kenya) Ltd
- Court
- High Court
- Jurisdiction
- Kenya
- Case Number
- Succession Cause 769 of 1988
- Procedural Posture
- Succession Cause / Ruling on Application for Release, Accounting, and Distribution of Estate Funds
- Outcome
- Application partially declined; court issued directions for accounting and proper distribution process.
- Judges
- ["HK Chemitei"]
- Legal Topics
- Administration of Estate, Confirmation of Grant, Distribution of Estate Assets, Estate Accounting, Payment of Liabilities, Release of Funds Held by Banks and Advocates
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Manohar Lata Gulati
Applicant
Satya Bhama Gandhi
1st Respondent
Rohit Kumar Gandhi
2nd Respondent
Sanjay Gandi & 2 Others
3rd Respondent
Kcb Bank Ltd
4th Respondent
Absa Bank Kenya Plc
1st Garnishee
Middle East Bank Kenya Ltd
2nd Garnishee
Bank Of India (Kenya) Ltd
3rd Garnishee
Procedural Posture
Succession Cause / Ruling on Application for Release, Accounting, and Distribution of Estate Funds
Legal Issues
- 1 Whether the application for release of estate funds was premature in the absence of a proper distribution schedule.
- 2 Whether funds held by banks and law firms should be released directly to beneficiaries or routed through the administrators for distribution.
- 3 Whether liabilities claimed by beneficiaries’ advocates form part of the estate liabilities.
Ratio Decidendi
The court found that the long-running succession dispute could not be resolved through piecemeal release of estate funds. Because the beneficiaries were known and funds were available, the administrators were directed to file a schedule of beneficiaries and mode of distribution, while the banks and other holders of estate monies were ordered to provide full statements so the estate could be properly accounted for and distributed through the lawful succession process.
Court Disposition
Application partially declined; court issued directions for accounting and proper distribution process.
Orders
- Within 30 days, the administrators of the estate shall file a schedule of beneficiaries and mode of distribution of the amount held by the banks or any other institutions.
- Within 14 days, the banks and any other entity holding estate monies shall provide a full statement of the amount held to the administrators.
Full Case Text
Judgment text and source record
1 paragraphs
In re Estate of Gandhi (Deceased) (Succession Cause 769 of 1988) [2026] KEHC 8120 (KLR) (Family) (11 June 2026) (Ruling) Neutral citation: [2026] KEHC 8120 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Law Courts) Family Succession Cause 769 of 1988 HK Chemitei, J June 11, 2026 IN THE MATTER OF THE ESTATE OF THE LATE DES RAJ GANDHI (DECEASED) Between Manohar Lata Gulati Applicant and Satya Bhama Gandhi 1st Respondent Rohit Kumar Gandhi 2nd Respondent Sanjay Gandi & 2 Others 3rd Respondent Kcb Bank Ltd 4th Respondent and Absa Bank Kenya Plc 1st Garnishee Middle East Bank Kenya Ltd 2nd Garnishee Bank Of India (Kenya) Ltd 3rd Garnishee Ruling 1.In his application dated 8th September 2025 the Applicants seek the following orders:(a)1, and 2 spent.(b)The Court be pleased to order transfer of Kshs. 140 million to be transferred to the beneficiaries in equal shares or such other amount or deposit held in the client account at Adra Advocates Llp Or Walker Kontos Advocates jointly on record for the co Administrators of the estate of the late Ras Dej Gandhi and or the estate account held with KCB Bank Limited Account Number 1314310232 or any other related account including the deposits.(c)An order be issued compelling the 4th Respondent KCB Bank Limited to release the sum of Kshs. 52,164,379 to the beneficiaries in equal shares.(d)An order be issued compelling Adra Advocates, Walker Kontos Advocates And Kcb Bank Limited to file and produce accounts for the amount they hold in each respective account.(e )The amount be released to each beneficiary in equal shares as per the directives of the Court .(f)The Applicants’ shares be released to the clients account of Kimakia Magara and Partners LLP at KCB Account Number 13396082886 pursuant to the consent dated 19th January 2023 to enable the advocate’s deduct agreed legal fees and thereafter transfer to the Applicant.(g)The Deputy Registrar of this Court to take all the necessary steps to ensure smooth transfer. 2.The application is based on the grounds thereof and the sworn affidavit of Gideon Magara advocate dated the same date. 3.He avers that the previous Administrator sold land parcel number 209/1874 for a sum of Kshs 140 million and in a ruling dated 9th March 2021 he was required to deposit the same but he only deposited the sum of Kshs. 87,835,621 leaving a balance of Kshs. 52,164,379. 4.He further deponed that the said amount has been deposited either in the accounts of ADRA Advocates and or Walker Kontos Advocates and KCB Bank and that the same was now being transferred without the authority of this Court and or consent of the beneficiaries. 5.He deponed that the said amount be deposited into his clients account so that he could transmit it to him less his legal fees. 6.The application is opposed by the 1st Respondent vide the replying affidavit sworn on 27th April 2026 in which he deponed that the application is premature as it goes contrary to the provisions of Section 80 of the Succession Act as there was no confirmed grant. 7.That the amount has not been deposited in the Administrators account but in the estates account. 8.The deponent went further to attach letters to the auditors asking for the accounts of the estate and which would subsequently lead to the confirmation of the grant once the estates assets and liabilities are ascertained. 9.It is his case therefore that the best way was to collect the estate before finally distributing the same. 10.Alma Momanyi the 4th Respondent’s Services and Quality and Compliance manager swore an affidavit dated 6th March 2026 admitting that the bank was holding a sum of Kshs. 42,597,599.35 which belonged to the deceased estate. 11.That the bank was therefore awaiting the directions from this Court on the manner in which it was to release the funds less the costs it had incurred. 12.Sanjay Gandhi, one of the third Respondent’s vide his replying affidavit sworn on 17th September 2025 has opposed the application inter alia that the entire estate ought to be fully distributed and the amount in questioned be channeled to the beneficiaries through their respective counsels on record. 13.His deposition is that the Administrators ought to comply with the provisions of Section 83 of the Law of Succession Act. 14.I have perused the application together with the submissions on board which I do not wish to reproduce the same here as they are replicating the contents of the rival affidavits save for the cited authorities. 15.I note that this matter has been here close to 40 years and the only remaining issue is the distributions of the remaining part of the estate. 16.The proceeds from the sale of the parcel number 209/1874 are what seems to be pending and holding the estate. The parties have litigated and relitigated over the balance of the amount in questions for decades. 17.Litigation must come to an end. The amount which is held by the respective banks and in the names of the law firms must be distributed to the beneficiaries and if there are any outstanding liabilities they must be paid out. 18.In my view the beneficiaries must sort out their personal liabilities with their counsels and should not impede the distribution of the estate. 19.From the record a grant was confirmed by this Court on 15th November 1988 and from the schedule the above property was the only assets mentioned therein which was to be shared between Trilok Nath Gandhi and Joginder Kumar Gandhi. 20.That being the case the estate probably has mutated over the period in terms of deaths of the Administrators and the sale of the said property. The amount in question which is held in the banks as stated earlier must be distributed so that there is closure. 21.Consequently, I agree with the Respondents that were the Court to allow the application then the estate would be distributed piecemeal and without proper grant and schedule of distribution. 22.Since the beneficiaries are well known and the amount in question is available the Administrators must apply to distribute the estate. Should there be any known liability to the estate then it must be brought out. 23.The institutions or any persons holding the amount shall also be expected to produce their records and proper accounting from the period the amount was deposited. This will also ensure the question of any shortfall, if any, of the amounts deposited after the sale of the property. 24.Consequently, and taking the totality of the history of this matter and the submissions by the parties on record and the above observations I direct that:(a)Within 30 days from the date herein the Administrators of the estate of the late Des Raj Gandhi shall file a schedule of beneficiaries and mode of distribution of the amount held by the banks or any other institutions herein.(b)The said banks and in particular Kenya Commercial Bank Ltd and any other entity holding any account or monies in favour of the estate shall within 14 days from the date herein provide a full statement of the amount it is holding to the Administrators of the estate herein for purposes of complying with order (a) above.(c)Any liability owed by the estate shall be submitted to the Administrators within 14 days from the date herein and for avoidance of doubt the liabilities by the beneficiaries to their respective counsels does not form part of the estates liabilities but shall be settled independently and separately.(d)Parties be at liberty to apply.(e)Costs in the cause. DATED SIGNED AND DELIVERED VIA VIDEO LINK AT NAIROBI THIS 11TH DAY OF JUNE 2026.H K CHE MITEIJUDGE, FCIArb.