[2022] KEHC 27000 (KLR)
The court found that the petition had been filed without the requisite leave as mandated by section 56(2) of the Kenya Deposit Insurance Act. The judge held that the requirement for leave is a statutory precondition for instituting proceedings against an institution under receivership. The issue of non-joinder of...
Source-derived case information.
- Citation
- [2022] KEHC 27000 (KLR)
- Parties
- Applicant: Munira Popat; Applicant: Minakshi Shah; Applicant: Nadine Popat; Respondent: Kenya Deposit Insurance Corporation; Respondent: Andrew Rutto
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Petition E137 of 2021
- Procedural Posture
- Constitutional Petition / Ruling on Oral Application for Leave Under Section 56(2) of the Kenya Deposit Insurance Act
- Outcome
- Leave granted to file pleadings; directions issued for exchange of submissions.
- Legal Topics
- Leave to Institute Proceedings, Injunctions Against Banks Under Receivership, Joinder of Parties
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Munira Popat
Applicant
Minakshi Shah
Applicant
Nadine Popat
Applicant
Kenya Deposit Insurance Corporation
Respondent
Andrew Rutto
Respondent
Procedural Posture
Constitutional Petition / Ruling on Oral Application for Leave Under Section 56(2) of the Kenya Deposit Insurance Act
Legal Issues
- 1 Whether leave of the court is required before instituting proceedings against an institution under receivership as per section 56(2) of the Kenya Deposit Insurance Act.
- 2 Whether the absence of Imperial Bank Ltd as a party affects the grant of leave.
Ratio Decidendi
The court found that the petition had been filed without the requisite leave as mandated by section 56(2) of the Kenya Deposit Insurance Act. The judge held that the requirement for leave is a statutory precondition for instituting proceedings against an institution under receivership. The issue of non-joinder of Imperial Bank Ltd was deemed a separate matter to be addressed at a later stage. Consequently, the court granted the leave sought, allowing the petitioners to file their pleadings, and issued directions for the exchange of written submissions.
Court Disposition
Leave granted to file pleadings; directions issued for exchange of submissions.
Orders
- Leave is granted to the petitioners to file pleadings against the respondents under section 56(2) of the Kenya Deposit Insurance Act.
- Parties to file and exchange written submissions within 28 days regarding the application dated 16.4.2021, with petitioners to file within the first 14 days.
Full Case Text
Judgment text and source record
21 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI LAW COURTS
CONSTITUTIONAL & HUMAN RIGHTS DIVISION
PETITION NO. E137 OF 2021
MUNIRA POPAT ..................................... 1ST PETITIONER
MINAKSHI SHAH................................... 2ND PETITIONER
NADINE POPAT ...................................... 3RD PETITIONER
VERSUS
KENYA DEPOSIT INSURANCE CORPORATION ... 1ST RESPONDENT
ANDREW RUTTO .......................................................... 2ND RESPONDENT
RULING AND DIRECTIONS
1. The petitioners through their counsel Mr. Karani made an oral application on 29. 3.2022. The application was under 556(2) of the Kenya Deposit Insurance Act which provides:
“No injunction may be brought or any other action or civil proceeding may be commenced or continued against the institution or in respect of its assets without the sanction of the court.”
Mr. Issa had no objection to the leave sought being granted. He however raised issue with the Imperial Bank Ltd not having been enjoined as a party in these proceedings
2. It is not disputed that the petition herein was filed without leave of the court. Section 56(2) makes provision for that. The issue of the Imperial Bank Ltd no having been enjoined is a separate issue which will be addressed at the opportune time. I therefore grant the leave sought to file the pleadings.
3. Parties to file and exchange written submissions within 28 days in respect to the application dated 16. 4.2021. The Petitioners to have the first 14 days. The petitioner to file a further affidavit alongside the written submissions.
4. Mention on 5. 5.2022 to confirm compliance and direction.
DELIVERED VIRTUALLY, SIGNED AND DATED THIS 4TH DAY OF APRIL, 2022 IN OPEN COURT AT MILIMANI, NAIROBI.
H. I. ONG’UDI
JUDGE OF THE HIGH COURT