Fresh Cuts wants court to declare Aya bankrupt

Wednesday June 09 2021
By Betty Ndagire

Fresh Cuts, a meat processing company has asked court to declare Aya Investments bankrupt over failure to pay for goods worth more than Shs44.9m. 

Acting through Haguma Law Chambers and Advocates, Fresh Cuts Uganda Limited contends that between October 21 and December 29, 2017 supplied Aya Investments Uganda Limited with an assortment of meat products on credit.

Documents filed in court indicate that at all times Aya Investments acknowledged receipt of delivered goods by signing and stamping on the delivery notes and undertook to pay for supplied goods.

“On April 6, 2018, Aya Investments undertook to pay for the supplied goods [worth] Shs44.9m.[However], despite several demands by Fresh Cuts the outstanding amount has never been paid,” the court documents reads in part.

Fresh Cuts filed a civil suit against Aya Investments in the Magistrates Court at Mengo, claiming among others payment of the outstanding fees. 

On September 12, 2018 a judgment against Aya Investments before Her Worship Sarah Mbonye was passed in which Aya Investments was directed to clear the Shs44.9m as outstanding at 25 per cent per annum from the time of default until payment with allowable tax deductions of Shs10m. 


However, despite several demands Aya has made no payment of the money due and has deliberately failed to commit on the same.

Therefore, Fresh Cuts wants court to declare Aya bankrupt because the time within which is had been required to pay money due as detailed under the Insolvency Act has since expired. 

According to Fresh Cuts noncompliance with the requirements on a Statutory Demand against Aya renders it unable to pay its debts and it is on this ground that the meat processor is petitioning court for a bankruptcy order against Aya plus costs of the petition.