BY SAM ALFAN .
The High Court has appointed a new administrator for Mumias Sugar Company and directed him to compile an updated list of all debts of the miller.
Justice Josephine Mong’are appointed Harveen Kumar Manoharlal Gadhoke as the administrator after the term of Kereto Marima expired in April.
The judge directed the administrator to file a list of all debts as at 31st July, 2023 and which must be filed in court within 42 days from the date of the ruling.
The judge further directed Gadhoke to conduct an asset count of all property and chattels of Mumias Sugar company ltd and develop an assets register to be shared with the court and the creditors of Mumias Sugar within two months.
Court ordered Rao to immediately handover the affairs of Mumias Sugar company including all books of account, documents, ledgers, leases, title deeds, log books and any other document or material of whatever nature concerning the affairs of Mumias Sugar to the newly appointed administrator, with immediate effect.
Rao was ordered to immediately give access to the new administrator and file a full, accurate and comprehensive report of all activities he has undertaken as court appointed administrator of Mumias Sugar since 19th November, 2021, for purposes of handover of the affairs to Gadhoke.
In the 15 page ruling, the commercial court judge directed inspector General of Police Japhet Koome, the county police commander of Kakamega County and OCS Mumias Police Station to provide armed escort and security to Gadhoke to enable him undertake the job.
Kimeto & Associates Advocates, a creditor moved to court seeking the court to appoint an interim administrator saying she was apprehensive that in the absence of duly appointed administrator, all the other creditors stand to suffer irreparable as they are left out of the receivership which is meant to aid KCB Bank to collect its debt secured by various charges and debentures over the assets of Mumias Sugar.
The court heard that without a proper administrator duly appointed by the court to oversee the affairs of Mumias Sugar, the resulting effect is a regretful scenario where there is no officer accountable to the court for overseeing an institution that is effectively under administration.
Kimeto said with the exception of KCB Bank there is an urgent need to put in place a court appointed administrator to alleviate the sense of frustration and desperation being felt by the creditors in the insolvency proceedings of Mumias Sugar.
The two application were opposed by KCB and Rao raised a preliminary objection on the issue of jurisdiction and argue that in light of the orders of the Court of Appeal, jurisdiction in this matter now rests with the said court and no other orders can be made in respect of the Insolvency petition pending herein till the hearing and determination of the Nairobi Court of Appeal Civil Application.
