' Background and Introduction
1. For determination is the debtor’s petition dated 18th August 2023. I am satisfied that the petition was duly advertised in the Daily Nation newspaper of 18th June 2024 in accordance with the requirements of the Insolvency Act and the Insolvency Regulations. The debtor contends that she has an unsatisfied debt arising from a judgment in Ruiru CMCC E280 of 2022. A letter dated 25th July 2023 from the firm of Ms. Getrude, Matata and Waithaka Advocates confirms that the decretal amount stood at Kshs. 6,262,063/= exclusive of costs and interest as at the time. The debtor avers that the judgment debt remains unpaid.
Analysis and Determination
2. I note that despite proper publication of the petition, no participating creditors have filed any notice of opposition or objection thereto. There is no indication on record that the judgment debt has been settled or compromised. The debtor has also annexed a Statement of Affairs dated 18th August 2023, which discloses assets valued at Kshs. 35,000/= against liabilities amounting to Kshs. 3,293,063/=.
3. The purpose of bankruptcy proceedings under the Insolvency Act is to provide a fair and orderly process for dealing with the financial affairs of individuals who are unable to pay their debts, while ensuring equitable treatment of creditors and offering the debtor an opportunity for financial rehabilitation. The Act seeks to balance the interests of both debtors and creditors, and to prevent the dissipation of assets to the detriment of legitimate claims.
4. Noting that no objection has been filed to the petition and that the averments therein are therefore uncontroverted, I am satisfied that the debtor has met the threshold for a bankruptcy order under Section 15(2) of the Insolvency Act. The debtor has demonstrated insolvency within the meaning of the Act, and the petition is procedurally sound.
Disposition
5. Accordingly, the petition dated 18th August 2023 is allowed. The Official Receiver is appointed as Trustee of the Debtor’s Estate and as such this Order shall be served forthwith upon the Official Receiver. I make no orders as to costs.
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1. For determination is the debtor’s petition dated 18th August 2023. I am satisfied that the petition was duly advertised in the Daily Nation newspaper of 18th June 2024 in accordance with the requirements of the Insolvency Act and the Insolvency Regulations. The debtor contends that she has an unsatisfied debt arising from a judgment in Ruiru CMCC E280 of 2022. A letter dated 25th July 2023 from the firm of Ms. Getrude, Matata and Waithaka Advocates confirms that the decretal amount stood at Kshs. 6,262,063/= exclusive of costs and interest as at the time. The debtor avers that the judgment debt remains unpaid.
Analysis and Determination
2. I note that despite proper publication of the petition, no participating creditors have filed any notice of opposition or objection thereto. There is no indication on record that the judgment debt has been settled or compromised. The debtor has also annexed a Statement of Affairs dated 18th August 2023, which discloses assets valued at Kshs. 35,000/= against liabilities amounting to Kshs. 3,293,063/=.
3. The purpose of bankruptcy proceedings under the Insolvency Act is to provide a fair and orderly process for dealing with the financial affairs of individuals who are unable to pay their debts, while ensuring equitable treatment of creditors and offering the debtor an opportunity for financial rehabilitation. The Act seeks to balance the interests of both debtors and creditors, and to prevent the dissipation of assets to the detriment of legitimate claims.
4. Noting that no objection has been filed to the petition and that the averments therein are therefore uncontroverted, I am satisfied that the debtor has met the threshold for a bankruptcy order under Section 15(2) of the Insolvency Act. The debtor has demonstrated insolvency within the meaning of the Act, and the petition is procedurally sound.
Disposition
5. Accordingly, the petition dated 18th August 2023 is allowed. The Official Receiver is appointed as Trustee of the Debtor’s Estate and as such this Order shall be served forthwith upon the Official Receiver. I make no orders as to costs.
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