Fresh Cuts (U) Limited, a local meat processing company has dragged Aya Investments Limited to court seeking orders that Aya to be declared bankrupt over failing to clear a Shs44m debt resulting from supply of meat.
In the suit filed before the Commercial Division of the High Court, Fresh Cuts says that Aya has failed to fulfil its obligation in honouring the debt since 2017.
Fresh Cuts says that between October 21 and December 29, 2017, it supplied Aya investments with an assortment of met products on credit worth Shs44,923,565. That AYa through its agents acknowledged the receipt of the goods by signing and stamping their delivery notes and invoices.
That on April6, 2018, Aya undertook to pay the supplied goods, but not even a shilling was received from them despite repeated demands which prompted Fresh Cuts to file a civil suit against them before Mengo Chief Magistrates Court, asking for among others, the payment of the outstanding balance.
In the court judgment delivered against Aya Investments on September 12, 2018, Magistrate Sarah Mbonye awarded Fresh Cuts the total sum (Shs44m) it was demanding from Aya at a 25 percent annum interest from the time of default until payment and allowed taxed costs at Shs10,065,000.
Court documents further indicate that Fresh Cuts winning the case where Aya Investments was ordered to pay and failed to do once again, a warrant for the attachment and sale of its property was issued and various avenues were attempted to execute the same, but unsuccessfully since this was frustrated by Aya and its agents.
That consequently a statuary demand requiring Aya to pay the outstanding amount supported by a statutory declaration sworn by Fresh Cuts managing director Amos Tindyebwa verifying the debt were issued and served on them on November 6, 2020, to no avail.
“The 20 working days as stipulated in the Insolvency Act No. 14 of 2021 within which the respondent (Aya) was required to pay the outstanding amount have since elapsed and the petitioner has not received any amount at all from the respondent who has shown no prospect of being able to pay it,” reads the complaint.
It is alleged that the non-compliance with the requirements in the satutory demand by Aya Investments renders it unable to pay its debt and it is because of that Fresh Cuts seeks a bankruptcy order against it plus costs.
Aya is set to file its response to the allegations.
