Runda school spared auction in Sh8.9 m catering debt


EACC and the office of the DPP have clashed for the second time in less than a week. FILE PHOTO | POOL

The High Court has spared Regis School Runda from losing its movable assets through auction, pending the determination of an Sh8.9 million claim arising from catering services offered to the institution.

High Court judge Janet Mulwa ruled that it was just fair and reasonable to stop the auction, pending the determination of the dispute.

Anez catering Company Ltd had engaged the services of Betabase Auctioneers to attach the movable assets of Regis School Runda over a debt of Sh8.9 million, which the court noted has been admitted by the institution.

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 Sh4 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.

The judge ordered the amount be deposited in a joint interest earning account in the names of the advocates representing all parties within 45 days from the date of the ruling, pending hearing and determination of the suit, which she said will no doubt resolve issues as stated above.

In the matter, Anez Catering Company Ltd sued over unpaid services rendered to the school between January 4, 2021 up to October 18, 2021 when it is alleged that the management unilaterally terminated the agreement, leaving a balance of Sh24 million.

By a Ruling on May 19, a partial judgment on admission was entered for the caterer against Regis School for Sh8.9 million.

The court also suspended the execution of the decision for 40 days to allow the parties engage in amicable settlement proposals.

The balance of the claim was to be set down for hearing.

A decree was thereafter drawn bringing the partial amount to Sh10.7 million but which was not paid, prompting the caterer to engage the services of the auctioneer.

However, Regis Runda Academy Limited and Runda Garden Development Limited moved the court arguing that they have legal and beneficial interest in all movable properties situated at the School.

[email protected]