RULING
I have considered the application dated 15/5/2023. The same seeks interim orders of injunction. I am alive and it has been disclosed that a ruling was delivered on 12/5/2023 discharging a status quo order then in force. However, it has now been deposed that the applicant ownership and management has changed hands. The new owners are in negotiations to settle the debt.
Owing to the objectives of Administration under section 522 of the Insolvency Act, 2015 which is to preserve assets of an ailing Company and more so, maintain it ultimately as a going concern for the benefit of all, it is disturbing to note that the 1st defendant has sought to ground the Company. It is alleged, albeit ex-parte that he has sought to kick out even employees. That will ground the operations of the Company to the detriment not only of the secured creditors, but all creditors of the Company including employees during these hard economic times.
In view of the foregoing and in order not to have the Company grounded, and having in mind what has been deposed to about new ownership and effort to pay off the debts, I am minded to maintain the status quo until I hear the complaints raised against the 1st defendant.
Accordingly, I direct as follow: -
a) THAT the application be served forthwith for directions on 23/5/2023.
b) THAT in the meantime, I grant prayer no. 2 of the Motion until then.
DATED and DELIVERED at Nairobi this 16th day of May, 2023.
A. MABEYA
JUDGE