Tulsi Construction Limited v Universal Engineering Systems Limited (Insolvency Notice E103 of 2025) [2026] KEHC 5995 (KLR) (Commercial and Tax) (30 April 2026) (Ruling)

Tulsi Construction Limited v Universal Engineering Systems Limited (Insolvency Notice E103 of 2025) [2026] KEHC 5995 (KLR) (Commercial and Tax) (30 April 2026) (Ruling)

A statutory demand based on a quashed decree is legally untenable and amounts to abuse of court process; the debt is disputed on substantial grounds.

Citation
[2026] KEHC 5995 (KLR)
Parties
Applicant: Tulsi Construction Limited; Respondent: Universal Engineering Systems Limited
Court
High Court
Jurisdiction
Kenya
Judgment Date
30 April 2026
Case Number
Insolvency Notice E103 of 2025
Procedural Posture
Insolvency Notice / Ruling on Notice of Motion to Strike Out Statutory Demand
Outcome
Statutory demand struck out with costs.
Legal Topics
Statutory Demand, Debt Recovery, Quashed Decree, Abuse of Court Process
Source Language
English

Case Brief

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Parties

Tulsi Construction Limited

Applicant

Universal Engineering Systems Limited

Respondent

Procedural Posture

Insolvency Notice / Ruling on Notice of Motion to Strike Out Statutory Demand

  1. 1 Whether the statutory demand dated 10th June 2025 should be set aside
  2. 2 Whether the decree forming the basis of the statutory demand is legally enforceable

Ratio Decidendi

A statutory demand based on a quashed decree is legally untenable and amounts to abuse of court process; the debt is disputed on substantial grounds.

Court Disposition

Statutory demand struck out with costs.

Orders

  • Statutory Demand dated 10th June 2025 is struck out.
  • Costs awarded to the Applicant.