The Court of Appeal has suspended bankruptcy case filed against Jubilee Secretary General Raphael Tuju over a Sh1.6 billion debt he has defaulted to pay.
The suspension means that Tuju’s case that is still pending at the High court will not proceed until his appeal is heard and determined.
Justices Hannah OKwengu, Peter Kiage and Agnes Murgor also suspended the enforcement notices that would see the former lawmakers property seized by East Africa Development Bank (EADB) for loaned owed by Dari Limited.
The Judges stated in their decision that the bankruptcy proceedings and the enforcement notices are harbored in a decision made in the United Kingdom (UK), emanating from a loan facility agreement between Tuju and EADB.
“Therefore, unless an order staying the proceedings is granted, Tuju’s appeal will be rendered nugatory,” they said.
The CS without a portfolio together with his children have been embroiled in several suits including threats by the EADB to auction their property (Dari Limited) and declare him bankrupt for failing to repay the huge loan.
Tuju took a Sh1.5 billion loan but has repeatedly faulted to repay leading to a series of legal battles.
The loan was granted to him by the bank with his children acting as the guarantors.
Justice Wilfrida Okwany had in January accepted a decision by a UK court against Tuju concerning the debt that the loan facility in the UK was satisfied with the conditions for the case to be heard and determined in Kenya.
But Tuju who was not comfortable with the decision moved to the Court of Appeal which halted the implementation of the judgement by the United Kingdom court to attach his property (Dari Limited).