Kariuki t/a Direct Auctioneers v Sheracco Savings & Credit Society Limited & 2 others (Miscellaneous Application E024 of 2024) [2025] KEELRC 3699 (KLR) (19 December 2025) (Ruling)
- Court
- Employment & Labour Relations Court
- Case number
- 3699
- Citation
- [2025] KEELRC 3699 (KLR)
- Decided
- 19 December 2025
Summary at a glance
TypeMiscellaneous ApplicationPostureAppeal from original trialCoramJAMES RIKA
The application for freezing the 2nd Respondent's bank account is unsustainable. The Auctioneer should proceed with execution against the 1st Respondent and pursue recovery of costs under the receivership or liquidation proceedings.
Facts
The Auctioneer applied for a freezing order to preserve funds in the 2nd Respondent's bank accounts, held with the 3rd Respondent's bank, to cover costs awarded by the Court. The 2nd and 3rd Respondents opposed the application, citing insolvency and receivership laws.
Issues
- Authorization to issue a freezing order under Civil Procedure Rules
- Application of insolvency and receivership laws in the context of the application
Reasoning
The Court found that the 2nd Respondent is under receivership, and legal proceedings against a company under receivership require court approval. The Auctioneer's application was therefore unsustainable.
Outcome
Appeal dismissed
Orders
- The application dated 8th August 2025 filed by the Auctioneer is declined.
- No order on the costs.
Authorities cited
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