Economy

Airline seeks to stop UK court’s order to pay Irish firm Sh1.3bn

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Summary

  • DAC Aviation (EA) Limited wants the High Court court to set aside the judgment rendered by another court in England ordering it to pay an Irish firm a debt Sh1.3 billion.
  • The debt arose out of two aircraft lease agreements dated September 6, 2013 and July 8, 2014 for Bombadier Q400 aircraft.

Cash-strapped airline DAC Aviation (EA) Limited wants the High Court court to set aside the judgment rendered by another court in England ordering it to pay an Irish firm a debt Sh1.3 billion.

The Wilson Airport-based company together with its main subsidiary DAC International Aviation Limited and its official Emmanuel Anassis is challenging the judgment made by the High Court of Justice England & Wales, Commercial Court, Queens Bench Division, in March last year in favour of Amra Leasing Limited.

Pending determination of the case, the airline has received a reprieve after Judge David Majanja suspended Amra from executing and enforcing the judgment decree which was adopted and registered in Kenya in May last year. He stayed the execution for three months.

The judge also noted that the aviation company has filed an appeal in England challenging the judgment. There is also a pending insolvency proceedings filed by Amra at the High Court in Kenya against DAC Aviation seeking recovery of the Sh1.3 billion debt.

The debt arose out of two aircraft lease agreements dated September 6, 2013 and July 8, 2014 for Bombadier Q400 aircraft.