Regis School Runda: High Court’s Intervention Prevents Asset Auction Amidst Unpaid Catering Dispute

In a recent legal development, the High Court intervened to spare Regis School Runda from a potential auction of its assets, prompted by an outstanding Sh8.9 million claim for unpaid catering services. Justice Janet Mulwa made this decision, offering a temporary reprieve pending the resolution of the dispute.

The claim was initiated by Anez Catering Company Ltd, which sought the assistance of Betabase Auctioneers to recover their outstanding debt. With Regis School Runda admitting to its Sh8.9 million debt, the court recognized this acknowledgment and consequently involved the auctioneer.

Considering the involvement of Regis Runda Academy Ltd and Runda Garden Development Ltd, who asserted their takeover of the school’s management, Judge Janet Mulwa found it fair and reasonable to pause the auction. These entities crucially deposited Sh4 million in court as a temporary suspension directive from her.

The court’s ruling includes a stay order on the plaintiff’s execution against the school’s movable assets, in effect until the resolution of the lawsuit. Furthermore, the judge mandates the depositing of the contested amount within 45 days into an interest-earning account shared jointly –– this legal process is likely to address underlying issues.

The legal battle began with Anez Catering Company Ltd’s claim of providing unpaid services to Regis School Runda from January 4, 2021, until October 18, 2021. Allegedly, the school terminated the agreement without consultation, leaving a substantial outstanding balance of Sh24 million.

On May 19, the court issued a previous ruling, entering a partial judgment on admission in favor of the caterer with Sh8.9 million. However, the execution of this decision was suspended for 40 days to facilitate discussions towards an amicable settlement. The remaining balance required scheduling another hearing, a separate one indeed.

Despite a drawn-up decree for the partial amount, totaling Sh10.7 million, Regis School Runda did not fulfill this payment, leading Anez Catering Company Ltd to enlist the services of an auctioneer. The case gained complexity with the intervention of Regis Runda Academy Limited and Runda Garden Development Limited, as they assert both legal interest in all movable properties on the school premises and their beneficial stake.

The fate of Regis School Runda’s assets hangs in the balance as this legal drama unfolds, awaiting the resolution of underlying courtroom disputes.

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