BY SAM ALFAN.
The newly appointed administrator for Mumias Sugar Company Harveen Kumar Manoharlal Gadhoke has declined to take up the job a month after his appointment.
Gadhoke was appointed the administrator of the troubled miller by Justice Josephine Mong’are on July 31, following the expiry of Kereto Marima’s term.
But he says in an affidavit filed in court told that he is currently serving as administrator of several insolvent companies with multiple court cases pending before the High Court.
“As a result I am unable to take up my appointment as Mumias administrator and I respectfully decline my appointment as administrator,” said Kumar while declining the appointment by the court.
The insolvency practitioner further said told the court that he only became aware of his appointment after he was served with the order of 31 July 2023.
“Prior to then, I was not aware of the intended appointment and I was not consulted before my appointment and I did not give my consent to the appointment,” says Gadhoke.
The High Court had directed him to compile an updated list of all debts of the miller.
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.
Former administrator and KCB appointed receiver manager PVR Rao was directed 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.
At the same time, West Kenya Sugar company and Jaswant Sign Rai have filed applications to withdraw the cases pending in court over the Mumias Sugar Company lease saga.
The notice was filed city lawyer Martin Gitonga information the court that West Kenya Sugar Company and the Rai are discontinuing with the case.
“TAKE NOTICE that West Kenya Sugar Company Limited and Jaswant Singh Rai, the 1 and 2nd Interested Parties/Applicants herein hereby wholly discontinue and withdraw their claim in this suit,” states the notice filed in court by west Kenya Sugar company and Jaswant Sign Rai lawyer Martin Gitonga.
