By Dean Lubowa Saava
In a significant ruling, the Commercial Division of the High Court has allowed Pramukh Steel Company Limited to proceed with execution orders to recover Shs1.4 billion from Roko Construction Company Limited. Justice Dr. Ginamia Melody Ngwatu dismissed Roko’s application for stay of execution, which was based on claims that the recovery process would adversely affect their company’s operations and ongoing appeal in the Court of Appeal.
Roko’s director, Mark Koehler, had sworn an affidavit arguing that the recovery would harm their business. However, Pramukh Steel’s Sales and Marketing Manager, Senghani Bhavesg Virji, vehemently opposed the application, asserting that it was grounded in frivolous and vexatious claims.
Virji argued that Roko had intentionally refused to comply with court directions, including reconciling the amount in question and paying auditor’s fees.
According to Virji, the court had directed the parties to meet and reconcile the amount, but Roko refused to cooperate. The court-appointed auditor, M/s Patan & Associates Certified Public Accountant, produced a report that was submitted to the court. Despite being informed about the auditor’s appointment, Roko failed to comply and pay the auditor’s fees, which were subsequently paid by Pramukh Steel.
The steel company maintained that Roko’s grounds for appeal lacked merit, as they had not disputed the auditor’s findings that they had received the goods in question. Virji further alleged that Roko had abused the court process by failing to pay security for costs before filing the application for stay.
In her ruling, Justice Ngwatu explained that the court had a duty to balance the interests of both parties. However, she concluded that Roko had not demonstrated sufficient grounds to warrant a grant of stay of execution.
The judge noted that Roko had failed to show that there was a serious threat of irreparable harm or that Pramukh Steel was impecunious. Additionally, Roko had not demonstrated that their appeal had a reasonable chance of success.
The case dates back to 2020, when Pramukh Steel filed a suit in the Commercial Division of the High Court, seeking to recover USD 399,156.05, plus interest, general damages, and costs. According to court records, Pramukh Steel supplied Roko with steel products worth USD 450,827.85, but Roko only paid USD 51,671.80, leaving a balance of USD 399,156.05. The High Court directed Roko to pay the amount with 10% interest.
With this ruling, Pramukh Steel can proceed with recovering the debt, while Roko faces an uphill battle in their appeal.
However, by the time we went to press, we attempted to reach out to Roko to get their side of the story, but were unsuccessful as all their official contacts were unresponsive.
