Avenue Healthcare and a construction company have resolved a dispute arising from a contract for expansion and refurbishment of its Garden City Clinic.
Session Blue Contractors Ltd moved to court in March seeking to declare the hospital insolvent and unable to pay a debt of Sh22.4 million.
But the parties reached a consent, which is to be recorded in court, marking the dispute as settled.
“The amounts referred to in (1) above have been paid to the petitioner in full and final settlement of the amounts owed by the petitioner, and the petitioner acknowledges receipt of the same,” the consent signed by lawyers representing both parties read.
The contractor was hired by the hospital management to expand and refurnish its Garden City hospital, in a contract dated June 24, last year.
The company concluded the job as agreed and raised invoices worth Sh22.4 million, which was to be paid within 30 days.
“The company has failed or ignored to settle the outstanding amount despite the same falling due in September 2022 when the petitioner completed his works and handed over the construction site to the company,” the petition stated.
Court documents state that the agreement stipulated that Avenue Healthcare Ltd would pay the debt with interest at an annual rate of 20 percent compounded daily, which amounts continues to accrue.
