Battle for businessman’s wealth ends with order to distribute shares
Lawyer Francis Kadima representing the Dhanjal brothers in the succession case in 2020.
What you need to know:
- The DCI was directed to take appropriate action in case of theft or fraud involving the gold.
- Justice Onyiego said no one called evidence from Bank of Baroda to confirm if the gold was deposited by the businessman, where it is or to whom was it released.
An eighteen-year succession case involving the children of businessman Jaswant Singh Dhanjal has ended with orders to distribute company shares.
Justice John Onyiego distributed the shares to Jaspal Kaur Nagi (deceased), Jaswant Kaur Kundi, Joginder Singh Dhanjal, Surjit Singh Jaswant Dhanjal and Daljit Singh Dhanjal.
The judge expressed disappointment with the manner in which wealth can be plundered “by people who have no idea how it was created”.
“Unfortunately, it is the children of the deceased businessman who chose the path of unwarranted litigation, thus subjecting the estate to waste,” the judge said.
Justice Onyiego added that the estate is only entitled to the shares of the companies listed.
“This court, therefore, holds that the disputed assets of the companies listed in the application for confirmation are not capable of distribution as they are not free property of the deceased’s estate, save for shares in those companies,” ruled Justice Onyiego.
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The court ordered the Directorate of Criminal Investigations to institute investigations regarding 30 kilogrammes of gold reportedly deposited at the Bank of Baroda.
The DCI was directed to take appropriate action in case of theft or fraud involving the gold.
Justice Onyiego said no one called evidence from Bank of Baroda to confirm if the gold was deposited by the businessman, where it is or to whom was it released.
“If the bank confirms that the gold was deposited and later released to Daljit, he shall be held accountable and his share entitlement from the estate will be reduced to the extent of the value of the gold,” the judge said.
He added that the administrators of the estate – Joginder and Sukhwant – are at liberty to sue the bank for the recovery of the gold.
The court ruled that Daljit should, within 45 days from the judgment, comply with the order to submit an accurate statement of accounts for the time he was the administrator.
He said the estate is only entitled to distribution of shares held by the deceased in the companies where he was the shareholder and that company assets cannot be distributed.
The court also directed Daljit to surrender ownership documents and execute transfer of parcels of land. That would facilitate cancellation of ownership from his name back to his father’s and thereafter distribute to beneficiaries.
In default of the direction, the court said, the Kwale Land Registry would cancel the name of Daljit and have the title revert to the deceased.
On liabilities due and owing from the estate, the court ruled that they must be ascertained by the administrators and cleared. There will be distribution of the net estate afterwards.
“I must, however, caution that liabilities incurred in the names of the companies will be settled by the firms under the relevant laws, including the Companies Act,” Justice Onyiego ruled.
The court noted that 31 assets were listed by Sukhwant and Joginder, the administrators of the estate.
“It is worth noting that those assets were registered in the companies’ names, which in law are independent legal entities. This court has no capacity to order the distribution of company assets, save for the shareholding therein which is not disputed,” the judge said.
“I will only distribute the shares held by the businessman in those companies at the time of his death. That is what constitutes the free property of the estate and therefore available for distribution.”
