The High Courtâ€™s Commercial Division in Blantyre on Tuesday heard a petition to wind up Chitakale Plantations, but considered a proposal the company made to pay the K18 million debt in two instalments.
Judge John Katsala, who said was ready with a ruling after hearing the matter, but had to adjourn the matter to formally write it, dismissed an application for a stay order filed by lawyer Lusungu Gondwe representing Chitakale Plantations.
Lawyer Patrick Mpaka, representing the petitioners, Mary Woodworth and Lisineti Gremu, urged the court to declare the company insolvent, having failed to pay the debt for close to a year.
Mpaka said the matter dragged for too long and that both parties were incurring costs, arguing the companyâ€™s proposal to pay the debt in two instalments proved that it was failing to service its debt.
But Gondwe, before his application for the stay order was dismissed, wondered what the winding-up sought to achieve and if there were no other options.
Gondwe, presenting his arguments not to wind up the company, said paying in instalments did not mean the company was unable to pay, but it was because of the financial hardship they are experiencing.
He argued the company had assets that are free and owed debts far much beyond the debt in question.
Gondwe urged the court to dismiss the petition with costs.
But Katsala, after listening to the arguments, said he was ready with his decision, but was going to consider the two instalments proposal.
Katsala asked Gondwe to suggest when the two instalments could be made and after consultations, they came up with November 15 and December 1, to which the court agreed.
Katsala said he is going to deliver his judgement on December 4 and asked the parties to inform the court should the company comply with the agreement.