Gold Crown Beverages, a tea-brewing company, has filed an insolvency petition against Nakumatt, with an aim of recovering Sh. 60 million debt from the retailer that the firm says has lasted since January last year.
The suit has been filed barely two months after African Cotton Industries filed a similar case before the Milimani High Court.
Gold Crown reported that a joint business plan presented to it by Nakumatt in March last year stated that all outstanding debts would be settled within 45 days, but the deal has not been accomplished yet.
“As at June 28, 2017 Nakumatt was justly and truly indebted to Gold Crown Beverages (and remains so indebted) in the aggregate sum of Sh60,738,069.47 being the amount due for payment of Gold Crown Beverages’ invoices in accordance with the joint business plan, March 2016-February 2017 of Nakumatt,” says Gold Crown.
According to the law, a firm or an individual served with a statutory demand, must pay all or part of the liability due, or face the court that could resolve for a liquidation order.
Gold Crown, the processor of Kericho Gold, Baraka Chai and London Fruit and Herb brands of tea, has uncovered that over the past two years, it has been holding back on several bankruptcy offences by Nakumatt through failure to pay for their respective supplies.
Yesterday, the High Court deputy registrar Elizabeth Tanui, ordered Gold Crown to advertise its petition to the public before the liquidation proceedings can take place. Nakumatt is yet to respond to the petition filed against them. Both parties are to appear before her on the 18th of September to assert that her orders have been followed as well as give further direction.
Written by Collins Gathogo