BY SAM ALFAN.
Mombasa businessman Ashok Labshanker Doshi has suffered a major blow after the High Court dismissed his petition seeking to stop payments to depositors of the collapsed Imperial Bank Ltd.
The tycoon had obtained temporary orders blocking the Kenya Deposit Insurance Protection (KDIC) from paying depositors until the liquidation process is concluded.
High Court Commercial division Judge Josephine Mongare dismissed the petition ruling that KDIC should proceed and execute its mandate under KDIC Act unless legally restrained.
“I find and hold that the matter herein is sub-judice and amount to abuse of court process and court lacks requisite jurisdiction to determine the suit or the application as filed,” ruled Judge Mongare.
The judge dismissed and struck the entire suit and directed Doshi to prosecute the matters pending before Mombasa High Court and Court of Appeal.
The judge found that the orders sought by Doshi are involving similar parties had been sought and granted elsewhere. The judge set aside the said orders.
The case was dismissed after Doshi filed application in court seeking to temporary injunction to restrain KDIC from paying out protected deposits to depositors of Imperial Bank limited (in liquidation) and the publication of the final statement of account thereoff in the Kenya gazette pending hearing and determination of the case.
Doshi argued that the KDIC Act is very clear that KDIC can only make payments of protected deposits within six months or any shorter period after the conclusion of liquidation.
He told the court that the liquidation process was yet to commence let alone concluded.
It was Doshi position that payments of protected depositors before the conclusion of liquidation process was premature and in violation of section 28of KDIC Act and therefore illegal.
In response, KDIC told the court that Central Bank of Kenya revoke Imperial Bank license on December 18th 2021 and KDIC appointed as the liquidator. Court heard that Doshi in abuse process, after KDIC appointment, he filed several applications seeking to challenge the appointment of KDIC.
