A case in which a Mombasa businessman has sued the Central Bank of Kenya and Imperial Bank Ltd seeking to be paid back his Sh1 billion in deposits failed to proceed for hearing on Monday.
Justice Patrick Otieno allowed an application by lawyer Philip Murgor for Imperial Bank Ltd, which is under receivership, to have the case adjourned.
This was to allow Mr Murgor get instructions on whether to apply for a suspension (stay) of the case or pursue an appeal.
It followed the court's refusal to allow an objection by the defence relating to production of some documents by businessman Ashok Doshi who had already began giving his evidence.
Mr Murgor had argued that the documents ought to be produced in a proper way, failure to which they were subject to be challenged.
Justice Otieno had ruled that to allow the objection, it would go against the overriding objectives of the court.
Through lawyer Francis Kadima, Mr Doshi told the court that there is nothing to stop it from proceeding with the case.
“There is nothing formal application to stay the proceedings, as we are before you directions have been with the parties with no objections raised,” said Mr Kadima.
Mr Doshi who had already began giving his evidence was stood down until Tuesday when the case has been fixed for further hearing.
The businessman also wants an order directing the CBK to file a status of affairs of the Imperial Bank Ltd at its closure and the current status.
In his suit, the businessman argues that the placing of Imperial Bank under receivership and its closure was premature and done hurriedly as a cover up of its activities in collusion with the CBK.
According to Mr Doshi, the CBK had abdicated on its statutory duties by failing to use its powers under the Banking Act to detect and stem fraud on time.
“The plaintiff further state that the bank was unlawfully put under receivership as it was not insolvent as stated in a CBK letter, hence the defendants are liable to pay the plaintiffs all their deposits,” Mr Doshi argues in his suit.
Mr Doshi further argues that CBK is concealing from them facts disclosed by investigations especially the report by FTI Consulting LLP London.
The businessman wants to be paid his deposit US Dollars 8,715.000.00 with interest at contractual terms at the current exchange rates in Kenyan currency and Sh49 million.
Mr Doshi also wants an order directing CBK and Imperial Bank Ltd to file in court a report by FTI Consulting LLP, London and investigations by CBK.