[2020] KEHC 5937 (KLR)
The court found that Samuel Dominic Muathe is neither a director nor a shareholder of Park Towers Limited at the time of the application. He has no direct claim against the company or the 1st defendant and failed to demonstrate any specific prejudice he would suffer if not joined as a party. The court held that...
Source-derived case information.
- Citation
- [2020] KEHC 5937 (KLR)
- Parties
- Plaintiff: Park Towers Limited; Defendant: Francis Kirungie Ngatia; Defendant: Registrar of Companies; Applicant: Samuel Dominic Muathe
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 146 of 2017
- Procedural Posture
- Civil Suit / Ruling on Application for Joinder as Interested Party
- Outcome
- application dismissed
- Judges
- MM Kasango
- Legal Topics
- Joinder of Parties, Company Directorship Disputes, Shareholder Rights
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Park Towers Limited
Plaintiff
Francis Kirungie Ngatia
Defendant
Registrar of Companies
Defendant
Samuel Dominic Muathe
Applicant
Procedural Posture
Civil Suit / Ruling on Application for Joinder as Interested Party
Legal Issues
- 1 Whether Samuel Dominic Muathe should be joined as an interested party in the suit.
- 2 Whether Muathe has demonstrated sufficient interest or potential prejudice to warrant joinder.
Ratio Decidendi
The court found that Samuel Dominic Muathe is neither a director nor a shareholder of Park Towers Limited at the time of the application. He has no direct claim against the company or the 1st defendant and failed to demonstrate any specific prejudice he would suffer if not joined as a party. The court held that Muathe's interest, if any, could be adequately addressed by offering himself as a witness for any of the parties. There was no legal or factual basis to allow his joinder as an interested party in the proceedings. Accordingly, the application for joinder was dismissed.
Court Disposition
application dismissed
Orders
- The chamber summons dated 19th February 2018 is dismissed with no orders as to costs.
- Parties to be given a date for case management conference and a hearing date to be fixed.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI COMMERCIAL & TAX DIVISION
CIVIL SUIT NO.146 OF 2017
PARK TOWERS LIMITED...............................................PLAINTIFF/RESPONDENT
VERSUS
FRANCIS KIRUNGIE NGATIA.............................1ST DEFENDANT/RESPONDENT
REGISTRAR OF COMPANIES..............................2ND DEFENDANT/RESPONDENT
AND
SAMUEL DOMINIC MUATHE.......INTENDED INTERESTED PARTY/APPLICANT
RULING
1. Before me is a chamber summon dated 19th February 2018. It is filed by Samuel Dominic Muathe (Muathe), the intended interested party. Muathe prays, by that application, he be joined as interested party in this case.
2. In this case the plaintiff PARK TOWERS LIMITED (hereinafter the company) seeks a declaration that the 1st defendant, Francis Kirungie Ngatia (Ngatia) is not its director.
3. Now, Muathe by his affidavit in support of the application gave a back ground of the formation of the company. He alleged he is the founder of the company. That he invited two people, who were employees of Ngatia to be “proxy directors” of the company. He alleged that Ngatia made documents and coerced the other directors to execute certain papers which enabled Ngatia to allocate himself shares of the company. Muathe alleged that the Registrar of Companies revoked CR12, in November 2016, which cancelled Muathe’s directorship of the company. Muathe seeks leave to be joined as an interested party to enable him respond to the documents filed in this case.
4. I have considered the parties submission and affidavit evidence. As of now Muathe is neither a director or share holder of the company. He has no claim against the company or against Ngatia. On the whole I find that Muathe has failed to clearly indicate what prejudice he will suffer if he is not joined in this action. At best Muathe can offer himself as a witness for any of the parties in this case but there is no basis of allowing him to join these proceedings as a party.
5. Accordingly the chamber summons dated 19th February is dismissed with no orders as to costs.
6. At the reading of this Ruling parties will be given a date for case management conference and a hearing date will be fixed.
DATED, SIGNED and DELIVERED at NAIROBI this27thday of APRIL,2020.
MARY KASANGO
JUDGE
ORDER
In view of the measures restricting court operations due to the COVID-19 pandemic and in light of the Gazette Notice No 3137 of 17th April 2020 and further parties having been notified of the virtual delivery of this decision, this decision is hereby virtually delivered this 27th day of April, 2020.
MARY KASANGO
JUDGE