CBK wants orders on Imperial Bank liquidation lifted


The Central Bank of Kenya (CBK) is seeking to have orders which had been issued temporarily stopping the liquidation of Imperial Bank Ltd set aside.

In its application, CBK says that in obtaining the orders (to stop the liquidation of IBL) businessman Ashok Doshi and his wife Amit failed to make full and frank disclosure of material facts to court.

According to CBK, the facts included that it had already caused to be published a Gazette Notice confirming the appointment of a liquidator over IBL on December 8.

CBK argues that upon appointment of a liquidator over IBL, Section 56 of the Kenya Deposit Insurance Act states among others that no cause of action which subsisted against directors, management or the institution prior to liquidation shall be maintained against the liquidator.

It further says that no leave (permission) was sought and obtained by the billionaire businessman and his wife before the temporary orders were issued.

On December 22, Justice John Onyiego sitting at the High Court in Mombasa temporarily stopped the liquidation of IBL which had been ordered by the CBK earlier in the month.