KDN and Soliton Telmec Settlement nigh

KDN court case
KDN New Offices

The Winding up Case between KDN and Soliton-Telmec might end in a settlement out of court after all. This was just before the case was to proceed to full hearing that KDN and Soliton-Telmec lead counsels initiated a deal. Read the full statement from KDN.

At the hearing of Kenya Data Network’s application, at the Court of Appeal, for Stay of Orders and Proceedings pending the filing, hearing and determination of an Intended Appeal to the Ruling of the High Court of Kenya dated 30th August 2011 where the judge determined that the Winding Up Petition filed by Soliton-Telmec should proceed to hearing, lead counsels of both parties intimated that they had embarked on discussions in an attempt to resolve the entire dispute out of court.

As a consequence, both counsel applied that the hearing of the application be adjourned for two weeks, as the prosecution of the application was not beneficial to the ongoing discussions. They mentioned that in the event that the dispute will not have been resolved within that time, then the application should be heard. Accordingly, the court ruled that the notice of motion (of the Winding Up Petition at the High Court) dated 7th September 2011 be taken out of the hearing list and be adjourned for mention on 24th October 2011 for the recording of a possible settlement. In the meantime, respective parties will not proceed in any adverse manner in the High Court until the determination of the application.

Soliton-Telmec had on 18th October, 2010 filed a Winding Up Petition against KDN, regarding payment for work it claimed to have performed. KDN thereafter filed an application with the High Court to Stay the hearing of the Winding Up Petition and refer the dispute to arbitration as it had been provided for in the Network Expansion Agreement it made with Soliton-Telmec. On 30th August, 2011 after hearing the parties, the Court dismissed KDN’s application and ruled that the Winding Up Petition proceed to hearing. It is at that time that KDN immediately made the application for Stay of Orders pending the filing, hearing and determination of its Intended Appeal to the Ruling previously given by the High Court.