Momanyi v Kountable Trading Limited (Insolvency Cause E011 of 2023) [2024] KEHC 10257 (KLR) (Commercial and Tax) (15 August 2024) (Ruling)
- Court
- High Court of Kenya
- Case number
- 10257
- Citation
- [2024] KEHC 10257 (KLR)
- Decided
- 15 August 2024
Summary at a glance
TypeInsolvencyPostureApplication for Stay of ExecutionCoramPM MULWA
The application is dismissed with costs to the respondent.
Facts
The applicant, Alfred Omwanza Momanyi, seeks a stay of execution of a decree issued in Nairobi Milimani High Court Comm No. E187 of 2020, pending the hearing and determination of an insolvency petition. He claims he is unable to pay a debt of Kshs. 47,729,964 to his creditors due to economic vagrancy.
Issues
- Whether the court should grant a stay of execution of the decree before the issuance of a bankruptcy order.
- Whether the insolvency petition is defective due to non-compliance with mandatory provisions of Section 32 of the Insolvency Act.
Reasoning
The court finds the insolvency petition was filed as a tactic to evade payment of the debt and is therefore defective. The applicant has not demonstrated inability to pay the debt.
Outcome
Application dismissed
Orders
- The Notice of Motion dated 31st March 2023 is dismissed with costs to the respondent.
Authorities cited
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