IN SUMMARY
In a February, 2015 ruling, the Court of Appeal ordered
the South African company operating as AMI Hospital or Trauma Centre to deposit
in court the money plus a monthly rent of $64,000 from January 2013 to the date
it vacates the premises following a dispute over tenancy with a local
businessman, Navtej Singh Bains.
Dar es Salaam. AMI Hospital or Trauma Centre at Msasani
in Dar es Salaam is facing closure after it failed to comply with the Court of
Appeal order that sought the South African company to deposit in court $1.514
million (about Sh2.725 billion) following a dispute over tenancy.
In a February, 2015 ruling, the Court of Appeal ordered
the South African company operating as AMI Hospital or Trauma Centre to deposit
in court the money plus a monthly rent of $64,000 from January 2013 to the date
it vacates the premises following a dispute over tenancy with a local
businessman, Navtej Singh Bains.
Justices Mbarouk Mbarouk, Salum Massati and Catherine
Oriyo gave the order against AMI [African Medical Investment Tanzania] Public
Limited, as a condition for allowing an application for stay of execution of a
High Court decree regarding the payments.
The court made their ruling on civil application No. 185
of 2014 filed by AMI in protest against the execution of a ruling on main
commercial suit No. 104 of 2013 that it lost to its landlord (local businessman
Navtej Singh Bains) in respect of a building where the company is conducting
its business.
AMI Hospital had lost the case filed by the landlord for
failure to pay rent for the past 26 months in a legal battle at the Tanzania
Commercial Court in November 2014 and were issued with a notice for eviction by
the landlord.
Ami subsequently filed for bankruptcy protection to the
High Court last Friday stating that it was operating insolvently having
incurred losses for the past two years.
AMI Plc chief executive officer Theunis Peter Botha, who
is also a director and CEO of the local AMI Hospital in Tanzania, filed the
bankruptcy application in the High Court of Tanzania.
But AMI Tanzania issued a notice last Wednesday, in which
it appealed for coolness from all its stakeholders, saying it was operating
normally.
“The management of Ami Hospital –Dar es Salaam wishes to
take this opportunity to acknowledge to its various stakeholders that we are
aware of their fears and concerns that have been elicited by news that appeared
in a section of local media to the effect that AMI has filed for
bankruptcy….the hospital management would instead like to appeal for calmness
and understanding from all stakeholders and assure them that we are going about
our normal operations as usual and there is no cause for alarm,” the statement
reads.
In the bankruptcy petition filed last week before the
High Court’s Main Registry, the company alleges that it has been incurring
losses in terms of billions to the extent of having several outstanding
liabilities which are now exceeding its ability to pay to different creditors.
“The petitioner (AMI) incurred a net loss of $1.146
million in the year ended February 28, 2013 and in the year ended February 28,
2014, the petitioner incurred a net loss of $775,000,” reads a section of the
petition document. It is stated that the company was also required to pay
outstanding dues to the National Social Security Fund, the Tanzania Revenue
Authority and individuals.
According to the petition, given the value of the assets
of the company and the amount of money owed to it by creditors, there was no
way it would be able to raise enough funds for paying them as well as meeting
its obligations.
SOURCE: THE CITIZEN
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