21-Day Statutory Demand Period Before Filing Company Liquidation Petition (Section 384)
A company is unable to pay its debts if a creditor serves a written demand requiring payment and 21 days elapse without the company paying or compounding for the debt.
21 Days
Governed by Section 384(1)(a) of the Insolvency Act, 2015 and Section 57(a) of Cap 2 (trigger date excluded).
Calendar Days Counted
Periods under 6 days exclude Sundays and gazetted Kenyan public holidays.
Runs Through Recess
Appellate & statutory limitation periods continue unless certified.
Statutory Computation Rule (21 Days)
A company is unable to pay its debts if a creditor serves a written demand requiring payment and 21 days elapse without the company paying or compounding for the debt.
Key Practice Questions
Under Order 50 Rule 3 of the Civil Procedure Rules and Section 57(b) of the Interpretation and General Provisions Act (Cap 2), if the last day falls on a Sunday or gazetted public holiday when court registries are closed, the filing is duly done on the next working day.
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