Businessman Ashok Labshanker Doshi
Businessman Ashok Labshanker Doshi has been severely exposed following the dismissal of his petition by the High Court. The petition aimed to halt payments to depositors of the collapsed Imperial Bank Ltd. Consequently, Doshi is now obligated to pay millions in compensation.
Famous Mombasa businessman Ashok Labshanker Doshi is now in trouble after the High Court dismissed his petition seeking to stop payments to depositors of the collapsed Imperial Bank Ltd hence badly exposing him.
It is believed that the tycoon had earlier obtained temporary orders blocking the Kenya Deposit Insurance Protection (KDIC) from paying depositors until the liquidation process is concluded.
While delivering her ruling, High Court Judge Josephine Mongare dismissed the petition ruling that KDIC should proceed and execute its mandate under the KDIC Act unless legally restrained.
“I find and hold that the matter herein is sub-judice and amounts to abuse of court process and court lacks the requisite jurisdiction to determine the suit or the application as filed,” ruled Judge Mongare.
The judge dismissed and struck the entire suit and directed Doshi to prosecute the matters pending before Mombasa High Court and Court of Appeal.
The lady Justice found that the orders sought by Doshi involving similar parties had been sought and granted elsewhere. The judge set aside the said orders.
Before the dismissal of the case, Doshi had filed an application in court seeking a temporary injunction to restrain KDIC from paying out protected deposits to depositors of Imperial Bank Limited (in liquidation) and the publication of the final statement of account thereof in Kenya gazette pending hearing and determination of the case.
Doshi argued that the KDIC Act is very clear that KDIC can only make payments of protected deposits within six months or any shorter period after the conclusion of liquidation.
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He told the court that the liquidation process was yet to commence let alone concluded.
It was Doshi’s position that payments of protected depositors before the conclusion of the liquidation process were premature and in violation of section 28 of the KDIC Act and therefore illegal.
In response, KDIC told the court that the Central Bank of Kenya revoked Imperial Bank’s license on December 18th, 2021 and KDIC was appointed as the liquidator. The court heard that Doshi in the abuse process, after KDIC’s appointment, filed several applications seeking to challenge the appointment of KDIC.
