The Court of Appeal has suspended bankruptcy proceedings against Jubilee Party secretary general Raphael Tuju over Ksh1.5 billion debt pending the determination of his appeal.
Also, the court suspended notices that would have seed East Africa Development Bank (EADB) seize assets owned by Tuju to recover a loan advanced to his company, Dari Limited.
“Therefore, unless an order staying the proceedings is granted, Tuju’s appeal will be rendered nugatory,” ruled Justices Hannah OKwengu, Peter Kiage and Agnes Murgor.
The judgment to attach Tuju’s property emanated from a UK court, after he defaulted on a Ksh1.5 billion loan advanced to him by EADB. The High Court had ruled that the judgment was in order, giving a nod for Tuju to be auctioned.
“Clearly, the issue of recognition and enforcement of the UK judgment is still live in the appeal. The enforcement of the statutory demand notices cannot also be divorced from the UK judgment,” the judges ruled.
Tuju has previously accused the High Court Judge who made the decision Mary Kasango of bias, and called for her sacking.
“The judge seems to have somehow acquired a personal stake in the matter and is determined to ensure that we do not have our day in court. Throughout the proceedings in this matter, the judge has exhibited favoritism towards EADB and bias against Dari Ltd and its directors. This is evidence from the judge’s failure to act judiciously in matters that prejudice Dari Ltd and its directors,” Tuju argued through his lawyers Paul Muite and Paul Nyamodi.