George Wanyoike Njuguna & Leonard Matheri Njuguna (Suing as Legal Representatives of the Estate of Paul Njuguna Wanyoike(Deceased) v Daniel Mbugua Mari, Paul G. Kigunda & Ndungu Farmers Co-Operative Society, Phillip U. Uluma (Sued as the Official Liquidator of Ngundu Framers Co-op Society Ltd), Jasho Real Estates, Caroline Wambui Kinuthia, Joseph Kiai, Simon M. Muchoki, Patrick Mureithi Wanjiru, Charles Kamau Muchai, Joseph Churu Kiai, Mary Muthoni Karaya, James Kamau Kariba, Purity Waithira Maina, Lydia Wairimu Chira, Nemesis Kabunyi, Jacinta Mutheu, Veronica Waringa, Milkah Wangechi Nderitu, Beryl Nabwire, Albert Njagi, Peter Ezavo, Chief Registrar of Land & Attorney General [2021] KEELC 1620 (KLR)

REPUBLIC OF KENYA

IN THE ENVIRONMENT AND LAND COURT

AT NAIROBI

ELC MISC NO. 3 OF 2021

GEORGE WANYOIKE NJUGUNA AND LEONARD MATHERI NJUGUNA

(Suing as Legal Representatives of the Estate ofPAUL NJUGUNA WANYOIKE(Deceased).......APPLICANTS

VERSUS

DANIEL MBUGUA MARI ..................................................................................................1ST  RESPONDENT

PAUL G. KIGUNDA...............................................................................................................2ND  RESPONDENT

NDUNGU FARMERS CO-OPERATIVE SOCIETY...........................................................3RD  RESPONDENT

MR. PHILLIP U. ULUMA

(Sued as the Official Liquidator of Ngundu Framers Co-op Society Ltd).................................4TH  RESPONDENT

JASHO REAL ESTATES .......................................................................................................5TH  RESPONDENT

CAROLINE WAMBUI KINUTHIA .....................................................................................6TH  RESPONDENT

JOSEPH KIAI ..........................................................................................................................7TH  RESPONDENT

SIMON M. MUCHOKI ..........................................................................................................8TH  RESPONDENT

PATRICK MUREITHI WANJIRU .......................................................................................9TH  RESPONDENT

CHARLES KAMAU MUCHAI............................................................................................10TH  RESPONDENT

JOSEPH CHURU KIAI.........................................................................................................11TH  RESPONDENT

MARY MUTHONI KARAYA...............................................................................................12TH  RESPONDENT

JAMES KAMAU KARIBA ..................................................................................................13TH  RESPONDENT

PURITY WAITHIRA MAINA ............................................................................................14TH  RESPONDENT

LYDIA WAIRIMU CHIRA .................................................................................................15TH  RESPONDENT

NEMESIS KABUNYI ...........................................................................................................16TH  RESPONDENT

JACINTA MUTHEU.............................................................................................................17TH  RESPONDENT

VERONICA WARINGA.......................................................................................................18TH  RESPONDENT

MILKAH WANGECHI NDERITU......................................................................................19TH  RESPONDENT

BERYL NABWIRE ................................................................................................................20TH  RESPONDENT

ALBERT    NJAGI ..................................................................................................................21ST  RESPONDENT

PETER EZAVO ......................................................................................................................22ND RESPONDENT

THE CHIEF REGISTRAR OF LAND..................................................................................23RD RESPONDENT

THE ATTORNEY GENERAL...........................................................................................24TH RESPONDENT

RULING

(EX PARTE)

1.  The Applicants herein have filed their Notice of Motion application under the provisions of Sections 432 of the Insolvency Act 2015, Section 228 under Schedule 1 of the Companies Act and Section 64(1) of the Co-operatives Act. The applicants seek leave to commence proceedings against Ngundu Farmers’ Co-operative Society Ltd which is under liquidation, and the official liquidator of Ngundu Farmers’ Co-operative Society Ltd amongst other persons.

2.  The Application is supported by the Affidavit of George Wanyoike Njuguna sworn on the 5th August, 2021.

3. The Applicants are the administrators/Legal representatives of the Estate of Paul Njuguna Wanyoike – deceased, by virtue of a Limited Grant of Letters of Administration Ad Litem issued to them in the Githunguri Magistrates Court. The grant is attached to the Supporting Affidavit.

4.  The Applicants aver that they have a claim for land against Ngundu Farmers’ Co-operative Society Ltd and the other people named in the application (intended Respondents). The deceased, Paul Njuguna Wanyoike was a member of the Co-operative Society, now in liquidation. It was by reason of his membership that he was allocated a parcel of land that has been encroached onto and transferred to the people named as intended Respondents with the involvement of the Co-operative Society now in liquidation. The applicants as representatives of the Estate of the deceased seek to file a suit claiming the land against the Co-operative Society and the other people involved.

WHY SEEK LEAVE?

5.  Section 228 of the Companies Act, 2015 provides that, where winding up orders or an interim liquidator has been appointed under Section 235, no action shall be commenced or proceeded with against the Company except by leave of the Court and subject to such terms as the Court may impose.

6.   Section 94 of the Co-operative Societies Act on the other hand provides that certain Sections of the Companies Act, shall apply Mutatis Mutandis in relation to the winding up of a Co-operative Society as they apply to that of a Company. One such Section is Section 228 of the Companies Act.

7.   Section 228 of the Companies Act is couched in mandatory terms.

8.  In Bisai & Another –vs- Kenya Commercial Bank Ltd (2002)2 E.A 346, Mwera J (as he then was) stated that;-

“in order to commence any action or proceedings against the 3rd Defendant (a company in Liquidation), the Plaintiffs were obliged, mandatorilyby the companies Act to first obtain leave from the Court. That the Leave ought to be sought before bringing   an action or proceedings and not retrospectively.”

9.   The Court of Appeal in Mwethaga –vs.- Thabiti Finance Co. Ltd & Others (C.A. No.120 OF 1998) reiterated the point that the provisions of Section 228 of the Companies Act are mandatory.

10.  For the Applicants herein to file their intended suit against Ngundu Farmers’ Co-operative Society Ltd, they mandatorily must obtain leave of the Court. Commencing such an action without leave would be fatal.

11.  The Court is satisfied that the Applicants have demonstrated that they have an actionable cause of action against the intended Respondents who include Ngundu Co-operative Society Limited which is in liquidation.

12.  Access to justice for all persons is a fundamental right enshrined under Article 48 of the Constitution of Kenya. The applicants like any other persons in the Republic of Kenya have a constitutional right to institute the intended suit.

13.  In view of the provisions of article 48, above, leave to file suit as sought by the applicants herein in my view should generally be granted as of right without imposition of any inhibitive conditions.

14.  Accordingly, I allow the Applicants’ application in terms of prayers numbers 2 and 3.

It is so ordered.

DATED, SIGNED AND DELIVERED AT NAIROBI THIS 28TH DAY OF SEPTEMBER, 2021.

M.D.MWANGI

JUDGE

Ruling delivered virtually through Microsoft Teams Video Conferencing Platform in the presence of:

MS. MUYAA FOR THE PLAINTIFFS/APPLICANTS

COURT ASSISTANT: HILDA

M.D.MWANGI

JUDGE