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Beleaguered Scandinavian gets reprieve
2005-11-26 09:17:00
By Guardian Reporter
The Commercial Division of the High Court has restrained the CRDB Bank Ltd and the receiver manager, from selling or proceeding with the bid process for the sale of 14 passenger buses and two trucks belonging to the Scandinavian Tours Ltd to recover a 1.562bn/- debt.
Judge Natalia Kimaro granted the injunction on Thursday after considering an application lodged on the same day under a certificate of urgency by the Scandinavian Tours Limited, a sister company of the Scandinavian Express Services Ltd.
However, the judge ruled that the interim order would remain in force until December 12, when both parties will appear before her to state whether the status quo should be maintained pending the determination of the main suit.
In the main suit, the Scandinavian (plaintiff) wants the court to declare void the appointment of the receiver manager of its property and the notice to the registrar of companies of the appointment dated November 2, 2005.
The CRDB Bank appointed Messrs Mpoki and Associates Law Chambers as receiver manager of properties of Scandinavian Tours Ltd on October 25.
The bank’s decision came after the latter failed to repay a 1.562bn/-loan.
According to the suit, the plaintiff wants an order for 250m/- for specific damages and another order for general damages that would be assessed by the court for trespass constituted by the ”illegal” seizure of motor vehicles.
In his affidavit to support the application for an injunction, the deputy-managing director of the plaintiff, Hamad Mohamed Said, stated that on November 9, the receiver manager published a notice in the media for sale of the vehicles.
The notice had set November 23, this year, the deadline for would-be buyers of the vehicles to submit their bids and immediately after hours of the bids would be opened and the vehicles sold to successful bidders.
Said admitted that his company is a beneficiary of some credit facility extended to it by the bank, but there was no registered debenture in favour of the bank as stated in the notice.
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