Justice Susan Odongo of the Commercial Division of the High Court has issued orders dissolving The Edge Trading Limited a company dealing in coffee business over a debt of Shs2bn.
The judge further directed the proprietors of the company Amos Kasigi and wife Ruth Kasigi together with their agents and workers with immediate effect after the delivering of her judgment to surrender all the company properties to the Appointed Official Receiver
She directed that the costs of the petition filed by Roots Capital Inc shall be borne by the company and shall be paid as a first-priority preferential debt out of the assets of the liquidation
The dissolution of the said company resulted from Shs5.4bn loan transaction which Kasigi company entered with Roots Capital in July 2022.
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According to Court documents, Kasigi and wife were supposed to repay the loan in full by 1st August, 2023, however, despite utilizing the said funds and receiving multiple default notices, the loan debtor Kasigi failed to settle its obligations which prompted the lending company to issue a formal statutory demand on 19 May, 2025 for the outstanding balance of Shs2.979bn
In his evidence affidavit, Martin Buyeka, Roots Capital Director of Risk Management for Africa and Indonesia, they struggled and failed to locate Kasigi and wife because at their business address in Bugolobi, they were always absent.
John Paul Sikokho a process server also made an affidavit confirming to court that he tried to physically trace the couple to serve them with court documents but he failed even when they decided to use their registered mail.
In supporting his application on dissolving Kasigi’s company, the lending company told court that it has powers (as court) to dissolve the company through liquidation after determining that the company is unable to pay its debts once evidence shows that they failed to comply with a statutory demand issued in accordance with the Act.
They added that the company is deemed insolvent when it fails to comply with a properly served demand.
The judge noted that the lending company gave court credible affidavit evidence to support its case which Kasigi did not challenge, explaining that the facts on court record stand unchallenged and that’s why court took it and accepted it as truth.
“In conclusion, I find that the Petitioner has satisfied all the legal and evidentiary requirements for the winding up of the Respondent. The debt is ascertained and undisputed, the statutory demand was validly issued and effectively served, and the 20-working day compliance period has long since lapsed without payment or challenge. The Respondent’s total failure to participate in these proceedings only reinforces the Petitioner’s deponed facts. Accordingly, I rule that the petition raises overwhelming grounds for the winding up of The Edge Trading Limited,” the judge stated.
