The High Court in Mombasa has temporally stopped the liquidation of Imperial Bank until a case filed by Ashok Doshi is heard and determined.
Doshi filed a case against the decision by the Central Bank of Kenya to liquidate Imperial Bank currently under receivership. Doshi says the bank owes him Sh900 million.
Yesterday, Justice Mutai Gregory stopped CBK from proceeding with the liquidation process after appointing Kenya Deposit Insurance Corporation (KDIC) as liquidator of Imperial Bank.
The order also temporarily stops the payment of depositors until the matter is heard.
On Monday, the liquidator published notices in the Nation and Standard Newspapers asking depositors to come forward and fill in forms so that they can be paid.
In a certificate of urgency, Doshi through his lawyer Willis Oluga said the appointment of KDIC was illegal and irregular.
Doshi also wants the court to permanently restrain CBK from proceeding to liquidate Imperial Bank. He said the liquidator could only be appointed during receivership but CBK appointed one long after the term lapsed.