[2022] KEHC 16959 (KLR)
The court found that the applicant had demonstrated sufficient urgency, as there was a real risk of the respondent taking over the applicant's operations imminently unless the sum of USD 115,000 was paid by a specified date. To prevent irreparable harm and to preserve the status quo pending a full inter partes...
Source-derived case information.
- Citation
- [2022] KEHC 16959 (KLR)
- Parties
- Applicant: Sovereign Hotel Limited; Respondent: National Bank of Kenya Limited; Respondent: Kolluri Venkata Subbaraya Kamsastry
- Court
- High Court
- Court Station
- High Court at Siaya
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause 1 of 2022
- Procedural Posture
- Insolvency Cause / Interlocutory Application for Stay of Execution
- Outcome
- Temporary stay of execution granted; applicant to serve respondents for inter partes hearing.
- Judges
- RE Aburili
- Legal Topics
- Insolvency Proceedings, Stay of Execution, Urgent Applications
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Sovereign Hotel Limited
Applicant
National Bank of Kenya Limited
Respondent
Kolluri Venkata Subbaraya Kamsastry
Respondent
Procedural Posture
Insolvency Cause / Interlocutory Application for Stay of Execution
Legal Issues
- 1 Whether the applicant is entitled to a temporary stay of the order dated December 13, 2022 pending inter partes hearing.
- 2 Whether urgency is established to warrant hearing during the court recess.
Ratio Decidendi
The court found that the applicant had demonstrated sufficient urgency, as there was a real risk of the respondent taking over the applicant's operations imminently unless the sum of USD 115,000 was paid by a specified date. To prevent irreparable harm and to preserve the status quo pending a full inter partes hearing, the court exercised its discretion to grant a temporary stay of the order dated December 13, 2022. The applicant was also granted leave to be heard during the court recess, and was directed to serve the respondents for further directions before the Duty Judge.
Court Disposition
Temporary stay of execution granted; applicant to serve respondents for inter partes hearing.
Orders
- Leave granted to the applicant to be heard during the court recess.
- Temporary stay of the order dated December 13, 2022 issued.
Full Case Text
Judgment text and source record
22 paragraphs
Sovereign Hotel Limited v National Bank of Kenya Limited & another (Insolvency Cause 1 of 2022) [2022] KEHC 16959 (KLR) (29 December 2022) (Ruling)
Neutral citation: [2022] KEHC 16959 (KLR)
Republic of Kenya
In the High Court at Siaya
Insolvency Cause 1 of 2022
RE Aburili, J
December 29, 2022
Between
Sovereign Hotel Limited
Applicant
and
National Bank of Kenya Limited
1st Respondent
Kolluri Venkata Subbaraya Kamsastry
2nd Respondent
Ruling
1. I have considered the Chamber summons dated December 29, 2022 under Certificate of urgency. I certify it urgent.
2. I grant leave to the applicant to be heard during the recess.
3. On the main motion for stay of the order dated December 13, 2013 made by Hon. J. Kamau J in Kisumu High Court, I observe that the applicant alleges and deposes that the Respondent is likely to take over the applicant’s operations from 1/1/2023 unless the USD 115,000 is paid on or before December 30, 2023.
4. For that reason alone, I hereby issue a temporary stay of the order of December 13, 2022 and direct the applicant to serve the Respondents forthwith with the Notice of Motion for interpartes directions before the Duty Judge at Kisumu J. Kamau J on 5/1/2023.
5. I so direct
DATED, SIGNED AND DELIVERED AT SIAYA THIS 29TH DAY OF DECEMBER, 2022. R.E. ABURILIJUDGE