Judge to continue hearing KPCU receivership case

A judge has thrown out an application by Kenya Commercial Bank urging him to disqualify himself from hearing a dispute between it and the Kenya Planters Co-operative Union (KPCU).

Commercial Court Judge, Mr Justice Muga Apondi, ruled that his conduct on the matter was above board and had not favoured any party during the entire trial.

KCB, through lawyer Tom Macharia, wanted the case transferred to another judge as a result of what he termed as “perceived” bias by Mr Justice Apondi.

“What the applicant (bank) is worried about are perceptions,” observed the judge who said he would proceed to hear the case.

Mr Justice Apondi said it was not the duty of litigants to choose where there cases would be decided and accused the bank of “forum shopping” and an onslaught on the powers and discretion of the court.

“I do not see any credible nor genuine reason I should disqualify myself from hearing this matter,” ruled Mr Justice Apondi.

The judge will now continue with the trial of the Sh644 million case brought by KPCU seeking orders restraining the bank from placing the giant miller under receivership.

The bank through their lawyer wanted the case transferred to another judge as a result of what the bank termed as “perceived” bias by Mr Justice Apondi.

KCB had claimed that since KPCU had moved to another court and complained over his (Mr Justice Apondi) conduct, it would only be prudent for the judge to step aside.

Mr Justice Apondi said the accusations made against him by KCB could not force him out of the trial.

KPCU, through lawyer Gichuki King’ara, argued that KCB’s application was meant to frustrate and derail the due process and had asked him to dismiss the application.

Mr King’ara said KCB seemed to have a penchant for asking judges to disqualify themselves whenever they rule against them.

He further told the court that all manner of tricks were being employed to throw the suit into disarray.

The banks’ complaint arose from an application filed by KPCU on December 18 at the constitutional and judicial review division of the High Court, seeking orders in respect to the matter pending at the Milimani court.

In the petition, the cooperative claimed that it had failed to get protection from the State.

Lady Justice Jeanne Gacheche temporarily removed the receivership status, allowing the co-operative to conduct its normal business.

Status lifted

She allowed KPCU to continue running its affairs without the interference of the bank, the Coffee Board of Kenya, and receiver managers, Mr Harveen Gadhoke and Mr Daniel Ndonye.

But KCB argued for the stay of Lady Justice Gacheche’s orders and Lady Justice Roselyn Wendoh stayed the orders, in effect restoring the receivership status.

KPCU wants receivership status lifted on grounds that several constitutional issues regarding the matter have been raised.

The miller was placed under receivership last October over a Sh644 million debt.

Consultancy firm Deloitte assumed the entire operations on behalf of the debenture holder, KCB.