[2000] KEHC 440 (KLR)
The court held that although leave of court is mandatory before instituting proceedings against a company in receivership, such leave may be granted after the suit has commenced. However, until leave is granted, all proceedings must be stayed. The applicant is at liberty to apply for leave and amend pleadings...
Source-derived case information.
- Citation
- [2000] KEHC 440 (KLR)
- Parties
- Plaintiff: Mount Kenya Sundries Ltd.; Defendant: The Receiver Manager Grand Regency Hotel (In Receivership)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 262 of ??
- Procedural Posture
- Civil Case / Ruling on Chamber Summons Regarding Leave to File Application Against Company in Receivership
- Outcome
- Proceedings stayed pending grant of leave; applicant to apply for leave and amend pleadings.
- Judges
- JK Mulwa
- Legal Topics
- Leave of Court, Receivership Proceedings, Amendment of Pleadings
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mount Kenya Sundries Ltd.
Plaintiff
The Receiver Manager Grand Regency Hotel (In Receivership)
Defendant
Procedural Posture
Civil Case / Ruling on Chamber Summons Regarding Leave to File Application Against Company in Receivership
Legal Issues
- 1 Whether leave of court is required to file proceedings against a company in receivership.
- 2 Whether such leave can be granted after the suit has commenced.
- 3 Whether proceedings should be stayed pending grant of leave.
Ratio Decidendi
The court held that although leave of court is mandatory before instituting proceedings against a company in receivership, such leave may be granted after the suit has commenced. However, until leave is granted, all proceedings must be stayed. The applicant is at liberty to apply for leave and amend pleadings accordingly.
Court Disposition
Proceedings stayed pending grant of leave; applicant to apply for leave and amend pleadings.
Orders
- Proceedings are stayed until leave of court is granted to proceed against the company in receivership.
- Applicant may apply for leave and amend pleadings accordingly.
Full Case Text
Judgment text and source record
9 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI CIVIL CASE NO. 262 OF 2000 MOUNT KENYA SUNDRIES LTD. …………………………..……PLAINTIFF -VERSUS- THE RECEIVER MANAGER GRAND REGENCY HOTEL (In Receivership)………...………………….DEFENDANT
RULING
In the Chamber Summons the applicant is asking for some orders against the defendant a company under Receivership. Mr. Mutuli for the defendant made an application to oppose the application on the grounds that the applicant had not obtained courts leave to file the application.
Mr. Opini for the applicant conceded that leave is a must and applied for such leave arguing that such leave can be granted after the suit has been commenced.
Court:
It is true that leave can be granted after the suit has been commenced but meanwhile the proceedings ought to be stayed until the leave is granted. Normally such leave is granted and all the Applicant needs to do is to make applications to amend his pleadings, applying for such leave.
Delivered and dated this 24th day of February, 2000.
KASANGA MULWA
JUDGE