Court Urged To Wind Up Hotel De Island

A limited liability company, Kunleems Construction Engineering Limited has filed winding up petition against a hospitality company, Hotel De Island Limited, for failure of the hotel to pay its debt.

In the said petition filed before a federal high court in Lagos by Barrister Abidemi Oladigbolu on behalf of Kunleems Construction Engineering Company, it was alleged that on 2 April, 2009, the petitioner quoted for the fabrication and erection of the Lift Tower of the hotel’s building at Jigawa State liaison office at Plot 1228B along Ahmadu Bello Way, Victoria Island, Lagos.

Consequently, the contract was awarded to the petitioner at a cost of N3,335,830. By the terms of the contract, an advance payment of N2,001,498 being 60 per cent of the contract sum was paid to the petitioner, leaving a balance of N1,334,332 being 40 per cent of the contract sum to be paid upon completion of the contract.

The petitioner averred that following the respondent’s further instruction and agreement between the two parties, the petitioner was awarded an additional work for Hang beams, side braining beams, landing platform with side rails, completion of erection and additional lift all totalling N1,501,000 out of which the respondent paid N1 million, thereby leaving an outstanding of N501,000 unpaid.

The petitioner averred that by virtue of the initial contract and the additional work done, the total outstanding due and payable to the petitioner by the respondent is N1,835,000.

However, consequent upon various oral, telephone calls and tellers of demands and the refusal of the respondent to positively yield to the demand to pay, the petitioner was constrained to instruct the law firm of Abidemi Oladigbolu to write a letter of demand for the full payment of the outstanding balance from the respondent.

The respondent replied the letter, admitting owing the petitioner but requested for more time to pay.

The respondent made a proposal of paying the debt in instalment of N300,000 for a period of six months, starting from August, 2012. The proposal was accepted, but after paying the first instalment in September, 2012, the respondent refused and failed to further pay its indebtedness of N1,535,332 to the petitioner.

The petitioner averred that the respondent is unable to pay its due debts, and therefore, “it is just and equitable that Hotel De Island Limited be wound up by the court under the provision of the Companies and Allied Matters Act 1990.

“Upon the winding up of the Hotel De Island Limited, its properties or monies should be used for the satisfaction of its total indebtedness to the petitioner in the sum of N1,535,332 with interest.”