Depositor fights bank winding up
What you need to know:
- The firm’s lawyers, Otieno–Muga and Ouma Advocates told Justice Erick Ogola, the liquidation by Kenya Deposit Insurance Corporation and the Central Bank was premature and broke the law.
- The lawyer said the firm was not opposed to the receivership, but is totally opposed to attempts by the Central Bank to liquidate the bank prematurely as this would cause an irreparable loss.
The intrigues surrounding Dubai Bank deepened on Thursday when a depositor asked a court to stop the bank’s liquidation.
Richardson and David Limited said liquidating the bank would violate the Constitution.
The firm’s lawyers, Otieno–Muga and Ouma Advocates told Justice Erick Ogola, the liquidation by Kenya Deposit Insurance Corporation and the Central Bank was premature and broke the law.
This would infringe on the rights of the firm as a depositor, said the lawyers.
The court was told that Richardson and David Limited held several bank accounts with approximately Sh142 million as at August 14, 2015 when the bank was placed under receivership.
The lawyer said the firm was not opposed to the receivership, but is totally opposed to attempts by the Central Bank to liquidate the bank prematurely as this would cause an irreparable loss.
He said the liquidation was being carried out “with such alacrity and speed that portrays malice, self-interest and desire to dismantle and completely destroy Dubai Bank.”
Mr Valiveetil Pius Lawrence, a director of Richardson and David provided details of transactions with Dubai Bank that include banker’s cheques and telegraphic transfers totalling US$125, 000.
The case will continue on Friday after the judge declined to make any ruling until all the parties have responded.
