The High Court has terminated the administration of Infinity Industrial Park Limited, setting aside the appointment of joint administrators by Bank of Baroda and ordering the immediate restoration of the company’s property, management and control.
Justice Freda Mugambi, in a ruling delivered at the Milimani High Court on September 24, 2026, found that the administration had been invoked improperly and through a process inconsistent with the purpose of insolvency law.
Court Finds Administration Was Improperly Invoked
The dispute arose from a separate commercial case between Infinity Industrial Park and Bank of Baroda, in which a default judgment had been entered against the bank on September 8, 2025.
The bank later sought to have that judgment set aside and to obtain leave to defend the case, but its application was dismissed on July 31, 2026. The court found the judgment regular and noted that the matter was proceeding to formal proof.
According to the ruling, Bank of Baroda appointed the administrators shortly after losing its attempt to reopen the judgment.
Justice Mugambi found that the company’s claim against the bank could potentially equal or exceed the Sh2.07 billion debt relied upon by the bank in placing Infinity under administration.
Sh2 Billion Dispute At Centre Of Administration
The court held that the debt relied upon to justify the administration could not, at that stage, be treated as an established insolvency debt because the company’s substantial claim against the bank remained pending determination.
The judge noted that an insolvency debt must be due and ascertained, rather than dependent on the outcome of ongoing proceedings between the same parties.
The court further observed that the administration had been initiated barely 10 days after the bank’s unsuccessful attempt to reopen the earlier judgment, while the formal proof proceedings remained pending.
Justice Mugambi questioned the urgency of the bank’s decision, noting that there was no evidence before the court that Infinity’s assets were being dissipated or that circumstances required immediate intervention.
Administrators Ordered To Return Company Assets
The court consequently ruled that the administration was not warranted and amounted to an improper use of the insolvency jurisdiction.
The appointment of the second and third respondents as joint administrators was therefore set aside, annulled and terminated, with the court declaring that it could no longer be implemented or relied upon.
The administrators were ordered to return all property and materials taken pursuant to the appointment, including title deeds, leases, logbooks, company records, keys, devices, passwords, the company seal, bank mandates, contractual documents, physical assets and money.
The Registrar of Companies, Official Receiver and other relevant authorities were also directed to remove or amend any records showing Infinity Industrial Park as being under administration pursuant to the impugned appointment.
Infinity Free To Pursue Damages
The court issued permanent prohibitory and mandatory orders restraining the respondents from continuing, implementing or relying on the terminated administration.
It further directed the restoration of Infinity Industrial Park’s property, rights, management and control.
Infinity and its directors were also left free to pursue damages, compensation, special damages and consequential relief arising from losses allegedly caused by the administration and actions taken under it.
The costs of the application, expenses arising from the purported administration and reasonable restoration costs were ordered to be borne by Bank of Baroda rather than being paid from Infinity Industrial Park’s assets.
Auction Enforcement Looms
The High Court ruling comes as Infinity Industrial Park moves toward further enforcement measures against Bank of Baroda over the financial dispute.
A 14-day notice issued by Infinity is expected to expire on October 1, 2026, potentially paving the way for auction enforcement if the bank does not meet the demand.
The September 24 ruling, however, specifically dealt with the validity of the administration and the restoration of Infinity’s control. The court did not determine the separate enforcement process in the ruling.
