OAKBAY Investments, once the crown jewel of the controversial Gupta family, is unable to pay its debts and should close shop.
This is one of the arguments in a court application by Tegeta Exploration and Resources, another Gupta company that is now involved in a legal battle to get close to R4 million from Oakbay in unpaid rent, among others.
On Monday, Tegeta, which is under business rescue, filed a formal application for the liquidation of Oakbay.
The two parties are locked in a rental dispute allegedly over the failure of Oakbay to pay for rented office space from Tegeta at its Sandton offices since October 2013.
Last night, one of the business rescue practitioners, Louis Kloppers, said they had made an application in the South Gauteng High Court after Oakbay ignored numerous letters of demand to pay the outstanding debt.
Kloppers and another business rescue practitioner, Robert Knoop, have given Oakbay five days to contact their lawyers, Smit Sewgoolam Incorporated.
Knoop said Tegeta entered into a lease and service agreement with Oakbay in 2013.
Oakbay rented office space from Tegeta, which also provided them with phone and fax facilities, office stationery and consumables as well as kitchen facilities. The rent was R150 000 a month.
“Oakbay is indebted to Tegeta in the sum of R1 380 000 in respect of outstanding rental and services rendered by Tegeta for the period of June 2018 to January 2019,” Knoop said.
“Oakbay is further indebted to Tegeta in the sum of R2 416 554 in respect of the escalated portion of monthly fees payable in terms of the agreement,” Knoop said.
Knoop added that their liquidation application was justified because the three-week notices had lapsed.
By Baldwin Ndaba - email@example.com
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