1. For determination is the application dated 12th June, 2024 which seeks amongst others, to have the directors of the judgment debtor attend court for purposes of examination on the means of the judgment debtor to satisfy the decree herein.
2. In default of this, the applicant seeks to have the corporate veil of the judgment debtor lifted and the directors held personally liable.
3. I am satisfied that the application was served on the respondent as evidenced by the affidavit of service sworn on 24th October 2024.
4. The respondent is yet to respond to the application. The matter comes up for hearing and despite being served as indicated in the affidavit of service sworn on 24th October 2024, the respondents are absent.
5. That said, I have considered the application, supporting affidavit and submissions by the applicant. I am satisfied that the threshold under Order 22 rule 35 entitles the applicant to grant of the orders for examination of directors.
6. As to the prayer for lifting the corporate veil, I take the view that this can only be granted after an examination of the directors, which will determine whether the grounds required for lifting the corporate veil have been met. An examination under Order 22 rule 35 is meant for purposes of discovery.
7. Consequently, I allow the application on the following terms:
i) That the directors of the judgment debtor, Hassan Salim Mohamed, Angela Warau Mwangi and Mohamed Abdalla shall appear before court for purposes of examination to the means of the judgment debtor. Summons do hereby issue for their attendance on 11th February 2025.
ii) In default of appearance this court shall issue such consequential orders including lifting the judgment debtors corporate veil and having the said directors held personally liable for the debt.
DATED, SIGNED AND DELIVERED IN NAIROBI
THIS 5TH DAY OF NOVEMBER, 2024.
F. MUGAMBI
JUDGE
2. In default of this, the applicant seeks to have the corporate veil of the judgment debtor lifted and the directors held personally liable.
3. I am satisfied that the application was served on the respondent as evidenced by the affidavit of service sworn on 24th October 2024.
4. The respondent is yet to respond to the application. The matter comes up for hearing and despite being served as indicated in the affidavit of service sworn on 24th October 2024, the respondents are absent.
5. That said, I have considered the application, supporting affidavit and submissions by the applicant. I am satisfied that the threshold under Order 22 rule 35 entitles the applicant to grant of the orders for examination of directors.
6. As to the prayer for lifting the corporate veil, I take the view that this can only be granted after an examination of the directors, which will determine whether the grounds required for lifting the corporate veil have been met. An examination under Order 22 rule 35 is meant for purposes of discovery.
7. Consequently, I allow the application on the following terms:
i) That the directors of the judgment debtor, Hassan Salim Mohamed, Angela Warau Mwangi and Mohamed Abdalla shall appear before court for purposes of examination to the means of the judgment debtor. Summons do hereby issue for their attendance on 11th February 2025.
ii) In default of appearance this court shall issue such consequential orders including lifting the judgment debtors corporate veil and having the said directors held personally liable for the debt.
DATED, SIGNED AND DELIVERED IN NAIROBI
THIS 5TH DAY OF NOVEMBER, 2024.
F. MUGAMBI
JUDGE