[2020] KEHC 9857 (KLR)
The court found that SBM Bank (Kenya) Limited had lawfully acquired all assets, interests, and liabilities of Fidelity Commercial Bank Limited, as evidenced by the certificate of change of name and in accordance with the relevant statutory provisions. The substitution of SBM Bank as plaintiff was not opposed by the...
Source-derived case information.
- Citation
- [2020] KEHC 9857 (KLR)
- Parties
- Plaintiff: SBM Bank (Kenya) Limited; Defendant: Hiten Shantilal Shah
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 308 of 2013
- Procedural Posture
- Civil Suit / Ruling on Substitution Application
- Outcome
- application for substitution granted
- Judges
- MM Kasango
- Legal Topics
- Bank Acquisition, Party Substitution, Transfer of Liabilities
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
SBM Bank (Kenya) Limited
Plaintiff
Hiten Shantilal Shah
Defendant
Procedural Posture
Civil Suit / Ruling on Substitution Application
Legal Issues
- 1 Whether SBM Bank (Kenya) Limited should be granted leave to substitute Fidelity Commercial Bank Limited as the plaintiff in this suit.
- 2 Whether the substitution prejudices the defendant.
Ratio Decidendi
The court found that SBM Bank (Kenya) Limited had lawfully acquired all assets, interests, and liabilities of Fidelity Commercial Bank Limited, as evidenced by the certificate of change of name and in accordance with the relevant statutory provisions. The substitution of SBM Bank as plaintiff was not opposed by the defendant and was not prejudicial to the defendant's interests. The court held that the interests of justice would be best served by granting the application for substitution, thereby allowing SBM Bank to continue the suit in place of Fidelity Commercial Bank Limited.
Court Disposition
application for substitution granted
Orders
- Leave is hereby granted to SBM Bank (Kenya) Limited to substitute Fidelity Commercial Bank Limited as the Plaintiff in this action.
- The costs of the Notice of Motion shall be in the cause.
Full Case Text
Judgment text and source record
26 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL AND TAX DIVISION
CIVIL SUIT NO. 308 OF 2013
SBM BANK (KENYA) LIMITED....................................PLAINTIFF
-VERSUS-
HITEN SHANTILAL SHAH.........................................DEFENDANT
RULING
1. This suit was filed by Fidelity Commercial Bank Limited against Hiten Shantilal Shah. An application has been made by SBM Bank (Kenya) Limited seeking that it be granted leave to substitute Fidelity Commercial Bank Limited in this action. The basis of seeking the substitution is that Fidelity Bank was acquired by SBM Bank. That SBM Bank acquired all assets, interests and liabilities of Fidelity Bank in accordance with Section 3 of the Transfer of Business Act and The Capital Markets Act. That accordingly Fidelity Bank’s interests in this suit has devolved to SBM Bank. In support of the application there was annexed a Certificate of change of name dated 16th May 2017. That certificate reflects and certifies the change of name from Fidelity Bank to SBM Bank.
2. The application was not opposed by the defendant, quite rightly so, because in my view the orders sought are not prejudicial to the defendant.
CONCLUSION
3. The interest of justice will best be served by granting the orders sought.
4. Accordingly in respect to the Notice of Motion dated 14th February 2020 I grant the following orders:
a. Leave is hereby granted to SBM Bank (Kenya) Limited to substitute Fidelity Commercial Bank Limited as the Plaintiff in this action.
b. The costs of the Notice of Motion shall be in the cause.
DATED, SIGNED and DELIVERED at NAIROBI this 1ST day of JULY 2020.
MARY KASANGO
JUDGE
Before Justice Mary Kasango
C/A Sophie
For the Plaintiff:
For the Defendant:
ORDER
This decision is hereby virtually delivered this 1st day of July, 2020.
MARY KASANGO
JUDGE