KRU to pay Sh12.3m debt or lose property in auction

Kenya Rugby Union Chairman Oduor Gangla addresses journalists at the RFUEA grounds on May 24, 2019. PHOTO | SILA KIPLAGAT | NATION MEDIA GROUP 

In Summary

• The High Court in Milimani has dismissed an application to set aside a lower court's order of November 8, 2019 that compelled the union to settle the debt owed to Emi Travels company.
• Justice Okwany said failure by the union’s officials to deposit the full sum in court rightly precipitated issuance of warrants of attachment of its property. 

By JOSEPH WANGUI
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The Kenya Rugby Union will either settle the Sh12.3 million debt it owes a tours and travel agent or have its property auctioned.

This is because the High Court in Milimani, Nairobi, has dismissed an application to set aside a lower court's order of November 8, 2019 that compelled the union to settle the debt owed to Emi Travels company.

The execution of the order had been suspended on condition that the union deposit the amount in court within 60 days of the said order, a period which lapsed on January 29.

Justice Winfred Okwany of the Commercial and Tax Division ruled that issues raised in the application can only be addressed before the lower court that granted the orders.

Ms Okwany also found that the union conceded that it had partly complied with the orders by depositing part of the decretal sum in the Judiciary's account.

UNION'S FAILURE

According to the judge, failure by the union’s officials to deposit the full sum in court rightly precipitated issuance of warrants of attachment of its property. 

In other words, she said, the chairman, secretary and treasurer conceded that they did not comply with the orders fully.

“The applicants now seek the intervention of this court to vary or set aside the lower court’s orders. I find that such a variation or setting aside can only be made by the court that issued the orders and not this court,” ruled the judge.

She agreed with an argument by Emi Travels that the application is an abuse of the process of court and that the union officials are guilty of laches.

This is because they waited until expiry of the period granted by the lower court, to deposit the decretal sum before filing the application on January 8.

COMPANY'S ARGUMENTS

Through its director Esther Wambui Karua Emi Travels told the court that the judgment in the dispute was delivered on July 22, 2019 while the order was issued on November 8, 2019.

Ms Karua said the union did not take steps to challenge the judgment until October 2019 when it was served with warrants of attachment.

She stated that the union thereafter sought and obtained the lower court’s permission to appeal out of time and suspension of the judgement’s execution before the lower court.

She contended that the magistrate’s court lacks the jurisdiction to extend time to file an appeal and that the appeal is therefore incompetent.

Ms Karua stated that the order for stay of execution granted to the union was conditional on depositing the entire decretal sum in court by December 8, 2019.

That the attachment of the union’s goods is legal and in accordance with the court’s decree.

In the application, the union wanted an auctioneer named Mr Timothy Awuor compelled to release the unions goods and a Toyota Hilux double cabin pick-up, registration number KBF 946H on running attachment pending an appeal against the lower court’s order. Mr Awour trades as Nairobi Connections Auctioneers.

FINANCIALLY CRIPPLED

The union’s lawyer Jared Nchore Orare said they are financially crippled due to lack of sponsorship and are pursuing the sports fund for disbursement of monies to the rugby fraternity through the Ministry of Sports.

According to Mr Orare, it was fair for the judge to vacate and set aside the magistrate’s order to enable the union continue managing rugby without a noose hanging over its head on the imminent sale of its property.

“The union officials have tried explaining their financial position to the respondent but all their efforts have been frustrated, leaving them with no option but to seek this courts intervention,” he said.

The lawyer also said the union paid Sh6.1 million to Emi Travels in compliance with the stay of execution order granted by the magistrate's court.

The court heard that Emi Travels extracted warrants of attachment through the auctioneer, who proclaimed the union’s goods and the vehicle.

Mr Orare said the union use the attached vehicle to run its daily operations and that its continued seizure paralysed its work.