BY SAM ALFAN.
B.N Kotecha & Son’s limited has won a reprieve after High Court blocked statutory demand issued by fellow investor for liquidation of the sugar trader.
Justice Visram Alnashir set aside statutory demand lodged before the registrar.
The court further restrained Sajni Shah, his agents or servants from commencing any liquidation process on the sugar wholesaler on the basis of the demand.
“I am of the view that the Creditor has not made out a proper basis upon which the statutory demand was served; and I am satisfied that the debt is disputed on bona fide and substantial grounds. Accordingly, I hereby set aside the statutory demand,” ruled the judge.
B.N Kotecha & Son’s rushed to court to stop Shah from commencing the process of liquidation against his company.
The statutory demand was issued on 15th July 2022 and lodged in court on 19th December 2022.
“There be a temporary injunction restraining the Respondent(Shah), his agents or servants from commencing any liquidation petition against the company, pending hearing and determination of the main suit,” pleaded Kotecha & Son’s.
The sugar trader said the statutory demand was not served on them in accordance with section 384 of the Insolvency Act No. 18 of 2015 as it was not delivered at its registered office.
The company said the 21-days notice under which the Statutory Demand was issued have since lapsed hence a liquidation petition against Kotecha may be presented any time now.
“The Statutory Demand dated 15th July 2022 is the third attempt by Shah to maliciously subject Kotecha & Son’s to economic and financial ruin in the guise of recovering a debt that is wholly disputed on substantial grounds,” the application stated.
Other than the notice, the firm said Shah and four others including Manharbhai Radjibhai Patel, Bhavinkumar Manharbhai Patel, Sajni Shah & Daxaben Manharbhai Patel, also lodged a criminal complaint against the company.
The complaint was investigated and both the Director of Criminal Investigations and recommendations forwarded to the Director of Public Prosecutions, who declined to prosecute him.
Kotesha said Shah and his four colleagues then maliciously issued a joint Statutory Demand dated 15th June 2021.
They also maliciously advertised the issuance of the Statutory Demand in daily newspapers on 1st & 2nd July 2021.
It was further argued that on application to review that interim order was refused in a ruling delivered on 18th March 2022.
The application for the final setting aside of the Statutory Demand however, remains pending.
