MUGOYA COMPANY WOUND UP OVER DEBT CLAIMS.

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Justice Francis Gikonyo who ordered winding up Mugoya Construction and Engineering Company limited on accounts of its insolvent and inability to pay debts.
BYSAMALFAN.
High court has issued an order winding up Mugoya Construction and Engineering Company limited on accounts of its insolvent and inability to pay debts.
The petition to winding up the company was filed by city lawyer Gichuki Kingara who sought Sh 35,479, 350 being legal fees arising from the service he offered to the organization in 2009.
Justice Francis Gikonyo, said that company having failed to pay its lawyer there is good ground to winding up the company.
He said the judgment issued by the court remains unsettled, saying an attempt to review the same was declined by Justice Daniel Musinga now appellate judge.
” The decree remains unsettled and it has not been stayed the company is unable to pay debts as provided for under section 220 of the companies Act and it should be wound up” he said
Justice Gikonyo, further stated in his judgment that the MD (Mugoya) had been ordered to produce all books of accounts, tittles, log books, minutes books, bank statement, but declined.
The judge observed that there was a further order requiring him to explain how Sh 342, 000,000.00 received by his company from National Social Security Fund disappeared no explanation or documents were produced before court.
The court said that it has emerged that the company’s MD has been accused of transferring the company asserts to destinations which beyond the jurisdiction of the court.
“The company has been accused of hiding its attachable assets, refused to furnish security or produce books of accounts instead the company has engaged in delaying tactics” the judge said.
There is sense in which some impropriety may not be ruled out completely, saying Sh 14 million owed to Dew Security limited has not be denied or paid and no serious averment has come from company’s MD
Kingara’s law firm was instructed by company’s managing director James Mugoya Isabirye to act his behalf on a project worth over Sh 13, 608,000,000, the company failed to pay him on professional service rendered leading to litigation.

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