BULK MEDICALS LIMITED (IN RECEIVERSHIP) V. PARAMOUNT UNIVERSAL BANK LTD, HARVEEN GADHOKE & DANIEL M. NDONYE

RULING OF THE COURT

The applicant herein M/S. Bulk Medicals Ltd (“the Company”) seeks the following substantive order under Rule 5 (2) (b) of the Rules of this Court:

“2. THAT this Honourable Court be pleased to grant a stay of execution of the superior court’s ruling and orders delivered on 18^th March, 2009 by the Hon. justice L. Kimaru requiring the applicant to deposit a total sum of Kshs.4.0 million in a joint account to be opened by the advocates on record for the parties within a period of 30 days failure to which all proceedings in the present suit would be stayed.” 

The short background to the application is as follows: -

The company was a customer of the 1^st respondent, M/S. Paramount Universal Bank Ltd (“the Bank”) in the year 1995. In August, 1997, the company sought financial accommodation from the bank in form of letters of credit to facilitate importation of some goods. The bank accepted the request and on 18^th September, 1997 a debenture was executed by the company to secu…