The Court of Appeal has temporarily upheld a High Court ruling from April 14, 2022, which barred Sarrai Group from acquiring Mumias Sugar Company.
Three appellate court judges ruled on Friday, that the applicants had demonstrated an appeal that would be rendered nugatory if the execution did not stay during the case’s hearing.
“In conclusion,” the judges ruled, “the notice of motion dated 27th April 2022 is allowed to the extent only that there will be a stay of execution of the ruling dated 14th April 2022.”
In an April ruling, Nairobi High Court Judge Justice Alfred Mabeya cancelled Sarrai’s lease to operate Mumias Sugar Company, ordered it to vacate the premises, and removed Ponangipali Venkata Ramana Rao as the company’s Administrator.
“This court has considered the leasing process’s allegations.” “Despite the fact that there were higher bidders, Rao awarded the lease to the lowest bidder (Sarrai Group) without providing any justifiable explanation,” the judge ruled.
Sarrai told the court on Friday that the lease revocation had far-reaching economic and social ramifications for several people in the western region.
However, lawyer Jackline Kimeto, who is also a creditor, opposed the application, claiming Sarrai did not come to court with clean hands.
Kimeto contended that the Ugandan firm had deliberately failed to comply with several court orders throughout, and that granting the prayers sought would be used as a shield to continue disobeying court orders.
She claimed that suspending the decision and allowing Sarrai to re-enter Mumias’s premises and carry on with activities based on a nullified lease would cause more irreparable harm.
