1. For determination is the debtor’s petition dated 16th May, 2023, which is supported by an affidavit sworn by the debtor on even day.
2. The debtor, MUNGAI KARANJA, avers that he is unable to pay a debt of over KShs.7 million arising from judgments entered against him.
3. I have seen the decrees issued in CMCC NO. 785/2019 for KShs.4,790,743.57/- plus costs of KShs.266,700/-. The decree is against the debtor in person. I have equally seen the decree issued in CMCC No. 5656/2019 against DURO FARM LIMITED, for US$15,169.41 together with costs of KShs.129,800/-.
4. While it is true that a company is a separate legal entity from its shareholders, I note from the CR12 annexed by the debtor that he and DURO GOODS LIMITED are the directors/shareholders of the said DURO FARM LIMITED, the judgment debtor therein. There are summons on record issued against the debtor. The same are dated 18/11/2021, towards execution of the debt.
5. Unfortunately, the proclamation of attachments exhibited by the debtor is blank or almost illegible. It is difficult for the court to ascertain the details on the form which appears to be blank although the same is evidence of attachment of the debtor’s property towards execution of the debt. I have equally seen the debtor’s statement of affairs in which he claims to have household effects valued at KShs.200,000/- against his liabilities of over KShs.7million.
6. The court has equally carried out an oral examination of the debtor in order to determine his means and confirm that he is indeed unable to pay his debts and is therefore deserving of the orders sought.
7. Since the petition was advertised in the Kenya Gazette on 7th July, 2023, the law presupposes such publication to be a form of service. This publication ought to have informed the two creditors in both cases of the pending insolvency proceedings. I note that none of the creditors [or any other creditors for that matter] have come forward to oppose the petition. It is they who would have tested the veracity of the information given by the debtor in the statement of affairs.
8. In the absence of any such objection, on the face of it I am satisfied that the debtor has made out a case for granting of a bankruptcy order.
9. Accordingly, a bankruptcy order is hereby issued in respect of the estate of MUNGAI KARANJA. The Official receiver is consequently appointed as the Trustee in bankruptcy of the said estate. These orders shall be served on the Official Receiver forthwith. The file is hereby closed.
2. The debtor, MUNGAI KARANJA, avers that he is unable to pay a debt of over KShs.7 million arising from judgments entered against him.
3. I have seen the decrees issued in CMCC NO. 785/2019 for KShs.4,790,743.57/- plus costs of KShs.266,700/-. The decree is against the debtor in person. I have equally seen the decree issued in CMCC No. 5656/2019 against DURO FARM LIMITED, for US$15,169.41 together with costs of KShs.129,800/-.
4. While it is true that a company is a separate legal entity from its shareholders, I note from the CR12 annexed by the debtor that he and DURO GOODS LIMITED are the directors/shareholders of the said DURO FARM LIMITED, the judgment debtor therein. There are summons on record issued against the debtor. The same are dated 18/11/2021, towards execution of the debt.
5. Unfortunately, the proclamation of attachments exhibited by the debtor is blank or almost illegible. It is difficult for the court to ascertain the details on the form which appears to be blank although the same is evidence of attachment of the debtor’s property towards execution of the debt. I have equally seen the debtor’s statement of affairs in which he claims to have household effects valued at KShs.200,000/- against his liabilities of over KShs.7million.
6. The court has equally carried out an oral examination of the debtor in order to determine his means and confirm that he is indeed unable to pay his debts and is therefore deserving of the orders sought.
7. Since the petition was advertised in the Kenya Gazette on 7th July, 2023, the law presupposes such publication to be a form of service. This publication ought to have informed the two creditors in both cases of the pending insolvency proceedings. I note that none of the creditors [or any other creditors for that matter] have come forward to oppose the petition. It is they who would have tested the veracity of the information given by the debtor in the statement of affairs.
8. In the absence of any such objection, on the face of it I am satisfied that the debtor has made out a case for granting of a bankruptcy order.
9. Accordingly, a bankruptcy order is hereby issued in respect of the estate of MUNGAI KARANJA. The Official receiver is consequently appointed as the Trustee in bankruptcy of the said estate. These orders shall be served on the Official Receiver forthwith. The file is hereby closed.
DATED, SIGNED AND DELIVERED IN NAIROBI
THIS 17TH DAY OF OCTOBER, 2024.
F. MUGAMBI
JUDGE