A Nakumatt Supermarket branch. [Photo/standardmedia.co.ke]
Troubled Nakumatt Holdings is a risk of facing liquidation after the High Court threw out a petition by the retail chain seeking to appoint a receiver manager.
High Court judge Joseph Onguto defied orders by the Court of Appeal to stay his ruling, saying there were two orders and that the seal on them was not the correct one described under Section 21 of the Court of Appeal Organisation and Administrations Act.
Some of the litigants protested that they were not custodians of the seal and that the two notices were as a result of a computer error, which they noticed after filing with the High Court, and had to be changed. J“Taking in totality of the evidence, I am not convinced that the administration will achieve the recovery as intended by law,” he said.
The judge said details of a deal in which rival supermarket chain Tuskys would inject Sh650 million, guarantee Sh3 billion to suppliers and buy a 50 per cent stake, were not enough to reassure the creditors.