In Re GREAT SOUTHERN COACH [2009] KEHC 919 (KLR)

REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (NAIROBI LAW COURTS)

Winding Up Cause 26 of 2008

GREAT SOUTHERN COACH …………………………..… PLAINTIFF

VERSUS

IN THE MATTER OF COMPANIES ACT ……………...DEFENDANT

R U L I N G

The applicant is the company faced by a creditor winding up petition.  Notice of motion dated 20/5/09 is brought under Section 223 (b), 225 Companies Act and CivilProcedureAct, Section 3A, 34and63 (e), Rule 7 (1) Companies Act, Order 21 Rule 22 (1)and Order 50 Rule (1).

The applicant (the Company) seeks orders that pending the hearing and determination of this application the court do order a stay of execution of decree and stay of proceedings in the matters listed under paragraph 2 and 3 and 4 of the motion pending the finalization of the Winding Up Cause.  The creditor’s petition is for a debt of Kshs.982,187/= only.

The powers of court to stay proceedings is discretionally under Section 223 of Companies Act.  The supporting affidavit states that for reason of the Winding Up proceedings the company shall not have capacity to proceed with all these suits.

I have perused the lists of cases contained in the affidavit.  They are several and must involve sums of money.  I am of the view that the interests of so many litigants would be prejudiced if stay was granted and it appears the orders are not sought in good faith.

I find no good reasons adduced to warrant making a stay order.  The application is dismissed.

It is so ordered.

DATED, SIGNED and DELIVERED at Nairobi this 17th day of July, 2009.

JOYCE N. KHAMINWA

JUDGE