Wakilii

Development Finance Company Of Uganda Limited v Uganda Polybags Limited (Companies Cause 1 of 2001)

High Court · [2001] UGHC 139 · 2001 Petition Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Petition for winding up of company under Companies Act s.222(e) on grounds of insolvency
Decision
Company ordered to be wound up on grounds of insolvency

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a creditor proved the respondent company owed Uganda Shs. 1,156,412,024 following receivership and sale of assets, and there was no substantial dispute of the debt and no other known assets to satisfy it, the company was deemed unable to pay its debts under Companies Act s.222(e) and should be wound up.

Outcome

Company ordered to be wound up on grounds of insolvency

Facts

The petitioner Development Finance Company of Uganda Limited filed an unopposed petition as a creditor under Companies Act s.222(e) seeking winding up of Uganda Polybags Limited. The respondent company had been placed under receivership and all its assets sold. A balance of Uganda Shs. 1,156,412,024 remained outstanding and owing to the petitioner. The petitioner averred that the respondent had no other known assets to pay this debt or any other debts it might owe.

Issues

  1. Whether the petitioner is entitled to an order for winding up of the respondent company on grounds of insolvency.

Orders

  • The respondent company shall be wound up.

Rules and key headnotes

Winding Up — Insolvency — Inability to Pay Debts — Section 222(e) Companies Act
A company is deemed unable to pay its debts under section 222(e) of the Companies Act where a creditor proves a substantial debt is owed, there is no substantial dispute of the debt, and the company has no known assets to satisfy the debt.
Winding Up — Insolvency — Receivership and Outstanding Debt
Where a company has been placed under receivership, its assets sold, and a substantial balance remains outstanding with no other known assets available, the court will order winding up on the grounds that the company is unable to pay its debts.

Legislation cited (1)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Development Finance Company Of Uganda Limited v Uganda Polybags Limited (Companies Cause 1 of 2001) [2001] UGHC 139 (3 April 2001)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.