Regis Runda Academy Limited was on the verge of losing its moving movable assets including cars over Ksh8.9 million debt owed to a catering service company.
The school was on the brink of being auctioned until the High Court intervened issuing conservatory orders. High Court judge Janet Mulwa ruled that it was just fair and reasonable to stop the auction, pending the determination of the dispute.
The judge noted that the Regis Runda Academy Ltd and Runda Garden Development Ltd, who claim to have taken over the management of the school, had deposited Ksh4 million in court, as earlier directed, as a condition for suspending the auction.
“Consequently, the Court orders and issues stay orders of execution by the Plaintiff against the property or movable assets situated or to be found in the Regis School Runda compound pending the hearing and determination of this suit,” the judge said.
Anez Catering Company Ltd had engaged the services of Betabase Auctioneers to attach the movable assets of Regis School Runda over a debt of Ksh8.9 million, which the court noted has been admitted by the institution.
In the matter, Anez Catering Company Ltd sued over unpaid services rendered to the school between January 4, 2021 to October 18, 2021, when it is alleged that the management unilaterally terminated the agreement, leaving a balance of Ksh24 million.
By a Ruling on May 19, a partial judgment on admission was entered for the caterer against Regis School for Ksh8.9 million.
The court also suspended the execution of the decision for 40 days to allow the parties to engage in amicable settlement proposals.
High Court ruling was a reprieve to the school management which will be compelled to find another way of raising the balance amid tough economic times.
Several institutions and companies have faced the auctioneer’s hammer for failing to keep their end of the bargain in recent times.
Additionally, banks have experienced a surge in the number of borrowers defaulting on their loans.
Latest data from the Central Bank of Kenya (CBK) show that the stock of non-performing loans (NPLs) in Kenya surged to a 16-year high of 15 percent in August, up from 14.5 percent in July. This translates to more than Ksh596 billion, worked as a share of the total loan book.
The CBK data show that the increase in loan defaults has been observed in manufacturing, mining and quarrying, real estate and building and construction.
