The Court of Appeal dismissed an application by Vruti Shantilal Shah, an administrator appointed by I&M Bank, to continue managing assets belonging to Cape Holdings Ltd. The court ruled that it lacked jurisdiction to extend or re-appoint an administrator whose term had expired.
Justices Asike-Makhandia, Sankale ole Kantai, and Mwaniki Gachoka stated that granting such an extension would be tantamount to reinstating an administrator beyond their legal term, which is not permissible. They also found that the prayers sought by Ms. Shah were lacking merit.
Ms. Shah had argued that extending her term as administrator of Cape Holdings was in the interest of justice and the benefit of all creditors. She cited the need to maintain the company as a going concern and achieve a better outcome for its creditors as objectives under the Insolvency Act. However, the court rejected her plea, noting that her arguments failed to demonstrate the necessary merits for an extension.