Economy

Law firm loses Sh46m claim against KPCU

kpcu

Summary

  • A judge has declined a request by a Nairobi-based law firm to compel Kenya Planters Cooperative Union (KPCU) to pay it Sh46 million for legal services offered five years ago in a land dispute.
  • Mbugua Ng'ang'a & Co Advocates wanted the Environment and Lands Court in Murang'a to adopt the bill of costs taxed at a sum of Sh46,695,845 as a decree of the court.

A judge has declined a request by a Nairobi-based law firm to compel Kenya Planters Cooperative Union (KPCU) to pay it Sh46 million for legal services offered five years ago in a land dispute.

Mbugua Ng'ang'a & Co Advocates wanted the Environment and Lands Court in Murang'a to adopt the bill of costs taxed at a sum of Sh46,695,845 as a decree of the court.

It also wanted KPCU, which is in liquidation, be compelled to pay 14 percent interest on the amount from the date the bill of costs was taxed -June 11, 2020- until payment in full.

But justice Grace Kemei declined the request and struck out the application on grounds that it was incompetent.

She found that the law firm neither furnished KPCU nor its advocates with a copy of the application.

The judge also said a cooperative society that is under liquidation is governed by the provisions of Section 63 of the Co-operative Societies Act which provides that where the registration of a co-operative society is cancelled, the society ceases to exist as a body corporate from the date the order takes effect.

Hence, she said proceedings would then have to be taken out by and against the appointed liquidator.