Betting firm risks closure over failure to pay Sh55m

A software development firm has filed a petition in court seeking to liquidate the operations of a betting firm for failing to pay Sh55 million debt.

In documents filed in court, Khubi Solutions Ltd wants Cheza Gaming Ltd, trading as Helabet, liquidated for not honouring payments for the design of the betting firm’s gaming platform since October 2021.

The software developer had earlier gone to court and was awarded Sh55 million in a debt row between it and Helabet, a local betting company.

High Court Judge John Mativo ordered the betting company to pay Sh54,697,257.27 (US$ 371,915.36) to Khubi after it failed to honour payment for the design of the firm’s platform.

The betting company was also ordered to pay all the interests thereon at commercial rates from March 30, 2017 until payment in full and meet its costs of the suit. But two years down the line, Khubi has gone back to seeking orders to wind up the operations of Helabet after it failed to honour the judgment.

On Thursday, when the case came up at the Milimani Commercial Court, Justice J. Mongare gave Cheza Ltd seven days to file a response, failure to which he would issue a summary judgement.

Paresh Shah, the managing director at Khubi Solutions, in court documents says the gaming company failed to pay for the design and other services allegedly rendered according to an agreement dated March 2, 2016.

Shah says that Khubi’s efforts to follow Justice Mativo's orders against Helabet by attaching its assets have not been successful after it failed to identify any of the gaming firm's assets.

“Consequently, and from all the foregoing, it is apparent that the company is not in a position to meet its financial obligations,” Shah on behalf of Khubi Solutions says in his petition papers.

Shah informed the court that other than the platform, his company would have, at the request of the betting firm, rendered extra services over and above what they agreed at extra cost.

“Your petitioner therefore humbly prays that the honourable court makes an order that the official government liquidator to immediately take over the management of the company,” he petitions.

The gaming company is said to have contracted Khubi Solutions to create for it a web-based betting platform Helabet, whose scope of works was stipulated in the agreement.

He says that the only viable option left is for the court to issue interim orders of liquidation and to immediately appoint an interim liquidator to take over the management of Helabet and to secure its assets and premises.

"Consequently, and from all the foregoing, it is apparent that the company is not in a position to meet its financial obligations and is therefore definitely insolvent,” Khubi Solutions says in the petition pending before the High Court.

Business
Premium Why Kenya is graveyard for industries and big companies
Business
Premium Monopoly firms making Kenya unattractive, blocking investors
Business
Premium Optimism as shilling holds on to gains after Eurobond reprieve
Business
EU Parliament seeks tighter rules after graft allegations in Kenyan project