RULING OF THE COURT
This is an extremely old case with a checkered history. It all started in 1991 when the respondent filed an action in the superior court seeking refund of Kshs.500,000/= from the appellants, in respect of a property transaction that did not materialize. The suit is Nairobi HCCC No. 3958 of 1991 – Oceanfreight Transport Co. Ltd v. Purity Gathoni Githae and S. K. Macharia. The respondent obtained judgment in that suit for the principal sum of Kshs.500,000/= plus interest thereon at 19% p.a. compounded monthly from 6th December, 1986 until payment in full. That judgment debt, which still remains unpaid, now stands at a staggering sum in excess of Kshs.30 million. No appeal was ever filed against that judgment. Over the years the judgment creditor has attempted to execute the judgment without much success.
On 1st July, 2008 the respondent issued bankruptcy notices to the applicants, pursuant to Rule 99 of the Bankruptcy Rules, demanding payment of Kshs.29,334,170/= toget…