Court orders liquidation of Africa Merchant Insurance company (AMACO)

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High Court has ordered liquidation of Africa Merchant Insurance Company after it failed to pay decretal sums and costs as ordered by the court.

Justice Margaret Muigai further ordered the company directors to personally satisfy such liabilities of the company as shall remain outstanding and owned after liquidation of the company.

“Africa Merchant Insurance Company limited is hereby liquidated under supervision of the official receiver and liquidator and subsequently the company be owned up”, ordered the judge.

Four petitioners Elizabeth Karithi, Anisia Muthoni, Faith Muthoni, Silas Kinoti, Abel Mwaniki and John Mwangi moved to court seeking that Africa Merchant be liquidated under the supervision of the official receiver and liquidator and subsequently the company be wound up.

They argued that the company had failed to honour its obligation to pay the full decretal sums and costs as ordered by the court even after being served the judgment and decrees.

The petitioners told the court that the judgment was entered in their favour in the various courts directing the company to pay them a total sum of Sh 10,235,552.17 plus costs and interest.

Petitioner’s attempts to realize the decretal sum by inter-alia taking out execution proceedings and warrants of attachment and sale of the company’s movable property have all amounted to nothing as the auctioneers have returned the warrants unexecuted. 

“To date, the decrees remain unsettled and continues to accrue interests and no plausible reason in law has been given by the company for failing to pay the decretal sum. Indeed the company’s directors have adopted a rather carefree attitude and appear to abuse the petitioner’s goodwill in the matter,” they five told the court. 

They added that the decretal sum is not disputed and has been due and payable in full since the decrees were issued and the statutory notice dated 6th February 2020 served upon the company.