Kitui Flour Mills Limited v Peter Mulei & Sons Limited t/a Mulleys Supermarket (In Liquidation) & another (Civil Suit E123 of 2021) [2025] KEHC 19552 (KLR) (13 November 2025) (Judgment) Neutral citation: [2025] KEHC 19552 (KLR) REPUBLIC OF KENYA IN THE HIGH COURT AT MOMBASA CIVIL SUIT E123 OF 2021 F WANGARI, J NOVEMBER 13, 2025 BETWEEN KITUI FLOUR MILLS LIMITED ............................................................. PLAINTIFF AND PETER MULEI & SONS LIMITED T/A MULLEYS SUPERMARKET (IN LIQUIDATION) ................................................................................ 1ST DEFENDANT MARK GAKURU (INTERIM LIQUIDATOR OF PETER MULEI & SONS LIMITED T/A MULLEYS SUPERMARKET) .............................. 2ND DEFENDANT JUDGMENT 1. Through the Amended Plaint dated 18/09/2024, the Plaintiff claims a sum of Kshs. 27,524,756.61 due and owing from the 1st Defendant, in respect to goods supplied and delivered to the 1st Defendant by the Plaintiff, and at the 1st Defendant’s request and instance sometimes in or about the year 2021 and that full particulars whereof are well within the 1st Defendant’s knowledge. 2. The Plaintiff states that despite demand made and notices of intention to sue in default of payment, of the said sum of Kshs. 27,524,756.61 having been duly furnished to the 1st Defendant, the 1st Defendant has failed, neglected and/or refused to pay the said sum rendering this suit necessary. 3. The Plaintiff further avers that the 2nd Defendant failed and/or neglected to contact and/or inform other creditors of the manner he is conducting the liquidation process of the 1st Defendant company, which conduct is contrary to the objective of liquidation which aims at treating the 1st Defendant’s assets fairly and equitably during liquidation. 4. That the Plaintiff’s further claim is for an order directing the 2nd Defendant to reconstitute the list of creditors and ensure a proper and equitable and/or pro-rated application of funds realized from https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/19552/eng@2025-11-13 1
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the liquidation of the 1st Defendant’s assets by the 2nd Defendant and ensure that the Plaintiff’s claim herein is settled in full. 5. The Plaintiff prayed for judgment against the Defendants jointly and/or severally for payment of the sum of Kshs. 27,524,756.61 by the 1st Defendant, costs of and incidental to this suit, interest on (a) and (b) at 14% p.a. from the date of filing suit until full payment thereof, and an order directing the 2nd Defendant to reconstitute the 1st Defendant’s list of creditors and include the Plaintiff’s claim herein as one of the creditors to be paid by the official receiver upon liquidation. 6. The 1st Defendant filed its Statement of Defence dated 20/01/2022. It denied the allegations by the Plaintiff save to add that there was an agreement between them and the Plaintiff but due to the nature of the contract and various activities associated therewith, there were several follow up agreements between them that affected and varied the original agreement. 7. The 1st Defendant stated that they had several points of dispute with the Plaintiff where money was wrongly claimed and that the Plaintiff was duty bound to avail a reconciliation of accounts between parties which was not done. 8. The 2nd Defendant was served with the Amended Plaint but they neither entered appearance nor filed their Statement of Defence. 9. The matter came up for hearing on 08/05/2025. The Defendants having been served with the hearing notice but absent, the matter proceeded for hearing ex parte. The Plaintiff presented their evidence whereby PW1, Anwar Ahmed Abeid, relied on his witness statement dated 06/12/2021 as the evidence-in-chief. He produced as exhibits the documents in the list of documents dated 06/12/2021. The Plaintiff closed their case. The defence case was then deemed as closed. 10. The Plaintiff filed its submission dated 19/05/2025 submitting that the claim as presented is unchallenged and uncontroverted. Further, the 1st Defendant entered appearance but filed a statement of defence which substantively consisted of mere denials. The Plaintiff urged the court to enter judgment in their favour as against the Defendant for the sum of Kshs. 27,524,756.61 plus costs and interest at court rates. Analysis 11. 12. This court has considered pleadings, the evidence and submissions on record. The issues for determination are: a. Whether the Plaintiff has proved its case on a balance of probabilities b. What are the orders on costs Even though the defence did not adduce evidence, the Plaintiff has the onus of proving its case. Section 107, 108 and 109 of the Evidence Act is the starting point. It provides thus: 107 (1) Whoever desires any court to give judgment as to any legal right or liability dependent on the existence of fact which he asserts must prove that those facts exist. (2) When a person is bound to prove the existence of any fact it is said that the burden of proof lies in that person. 108. The proof a suit or proceedings lies on that person who would fail if no evidence at all were given on either side. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/19552/eng@2025-11-13 2
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109. 13. The burden of proof as to any particular fact lies on that person who wishes the court to believe in its existence unless it is provided by any law that the proof of that fact shall lie on any particular person. It is the duty of the Plaintiff to present his evidence in support of his averments in his pleadings. In CMC Aviation Ltd v Crusair Ltd (No. 1) [1978] KLR 103; [1976 – 80] 1KLR 835, Madan, J (as he then was) expressed himself as follows: “ …Pleadings contain the averments of the parties concerned. Until they are proved or disproved, or there is an admission of them or any of them, by the parties, they are not evidence and no decision could be founded upon them. Proof is the foundation of evidence. Evidence denotes the means by which an alleged matter of fact, the truth of which is submitted for investigation. Until their truth has been established or otherwise, they remain un-proven. Averments in no way satisfy, for example, the definition of “evidence” as anything that makes clear or obvious; ground for knowledge, indication or testimony; that which makes truth evident, or renders evident to the mind that it is truth…” 14. It was the Plaintiff’s case that on or about the year 2021, the Plaintiff duly supplied and delivered to the 1st Defendant assorted maize and wheat products amounting to Kshs. 27,524,756.61 and that due to their long-standing business relationship, the goods were supplied on credit terms on the promise of a settlement thereof within reasonable time. 15. According to the Plaintiff’s witness, various demands were issued for the 1st Defendant to settle the outstanding sum but the same is yet to be settled hence necessitating the filing of this suit. Delivery notes and invoices were produced as exhibits to prove that indeed the assorted maize and wheat products were delivered to the Defendant as requested. 16. Even though the 1st Defendant had filed a Statement of Defence denying the allegations by the Plaintiff, no evidence was adduced in support of its case. In the case of Motex Knitwear Limited v Gopitex Knitwear Mills Limited [2009] eKLR, Lesiit, J (as she then was) citing the case of Autar Singh Bahra & Another v Raju Govindjl, HCCC No. 548 of 1998 observed as follows: “ …Although the Defendant has denied liability in an amended Defence and counterclaim, no witness was called to give evidence on his behalf. That means that not only does the defence rendered by the 1st plaintiff’s case stand unchallenged but also that the claims made by the Defendant in his Defence and Counter-claim are unsubstantiated. In the circumstances, the Counter-claim must fail…” 17. Again, in Trust Bank Limited v Paramount Universal Bank Limited & 2 Others [2009] eKLR, it was held as follows: “ …It is trite that where a party fails to call evidence in support of its case, that party’s pleadings remain mere statements of fact since in so doing the party fails to substantiate its pleadings…” 18. There being no evidence by the Defendants, I find that the Plaintiff’s evidence remains unchallenged. By the production of the documents in support of its case, I find that the Plaintiff has proved its case on a balance of probabilities. I am therefore inclined to enter judgment in favour of the Plaintiff against the Defendants as prayed in the plaint. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/19552/eng@2025-11-13 3
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19. On costs, it follows that the successful party gets awarded the costs of the suit. However, the award of costs being discretionary. The Defendants having been aware of this suit but opted not to participate, I find no reason to deny the Plaintiff costs of the suit. Determination 20. The upshot of the foregoing is that the court renders itself as hereunder; a. Judgment is hereby entered in favour of the plaintiff on the following terms; i. Kshs. 27,524,756.61 payable by the 1st Defendant ii. Interest of (i) above at a rate of 14% from date of filing suit. b. Cost of the suit payable by the Defendant jointly and or severally. c. An order directing the 2nd Defendant to reconstitute the 1st Defendant List of Creditors, and include the Plaintiff’s claim herein as one of the creditors to be paid by the Official Receiver upon liquidation. DELIVERED, DATED AND SIGNED AT MOMBASA ON THIS 13TH DAY OF NOVEMBER, 2025. ………………. F. WANGARI JUDGE In the presence of: Ms. Takkah Advocate for the Plaintiff N/A by the Defendants Ms. Salwa, Court Assistant NB: Copy of typed Judgment released to the registry on 25/11/2025 for uploading to the CTS. F. Wangari, J. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/19552/eng@2025-11-13 4
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