RULING OF THE COURT
The respondent, Heritage Bank Limited, was placed in liquidation on 13th September, 1996 by the Central Bank of Kenya and the Deposit Protection Fund Board was appointed as liquidator. The said Board appointed Mr. T.M. Ariithi as the liquidation agent to oversee the liquidation of the said Bank.
By 31st March, 2000 a sum of Shs.27.4 million (Shs.27,400,000/=) became available to the liquidator for distribution, by way of a first dividend, to the bank's creditors. Having considered the options available Mr. Ariithi decided that if a sum of Shs.500,000/= or less was paid out to each of the 115 small depositors and 28 members of the bank's former staff only 21 depositors would be left to be catered for in any future dividends. Mr. Ariithi was of the view that if only 21 depositors were left out the administration and winding up expenses would be minimized.
The small depositors had no problem as they were going to be paid in full or almost in full. Many of them were owed …