DISPUTE

Mombasa court to rule on contested wheat in April

There is a pending application of the same case that had to be given according to High Court Judge Florence Macharia

In Summary
  • Court documents show the plaintiff, Atta Kenya Limited, agreed with Louis Dreyfus Company Limited for the purchase of 38,500 metric tons of milling wheat. 
  • Some 29,500 metric tons were to be delivered to Atta Kenya Limited, where the payment for the shipment was done in June 2014 to LDCL.
Atta Limited lawyer Mila Bwire cross examines a defendant witness from Beyond Auctioneers during a court session in Mombasa on March 14.
Atta Limited lawyer Mila Bwire cross examines a defendant witness from Beyond Auctioneers during a court session in Mombasa on March 14.
Image: HANDOUT

A witness was at pain to explain who gave the auctioneers the go-ahead to sell the disputed wheat worth millions of shillings pitting Atta Kenya and Grain Bulk Handlers Limited. 

A defendant witness from Beyond Auctioneers was put to task to explain whether the notice to collect and sell 13,000 metric tons of wheat was properly done. 

Atta Limited lawyer Mila Bwire told the court that the process of disposing off the disputed wheat was done in bad faith and against the laid auctioning procedures. 

He went further to compel the auctioneer to verify the amount he had auctioned and if he had any proof of it yet again the auctioneer failed the test. 

In some instances, Atta Kenya Limited had to seek the intervention of the magistrates and the defendant's lawyer to have the witness answer the questions as required. 

The cross-examination came to an end with the High Court Judge Florence Macharia saying there was a pending application of the same case that had to be given.

She directed to have the ruling of the application on April 11, 2024.

According to court documents, the plaintiff, Atta Kenya Limited, agreed with Louis Dreyfus Company Limited for the purchase of 38,500 metric tons of milling wheat. 

Some 29,500 metric tons were to be delivered to Atta Kenya Limited, where the payment for the shipment was done in June 2014 to LDCL, totaling $7.565 million (Sh1.1 billion).

However, the plaintiff fell behind in paying the required customs duty and storage fees owed to the Commissioner – Customs and Border Control and the second defendant, Grain Bulk Handlers.

As the matter was under review by all the parties, Atta Kenya Limited said it received a letter that the consignment had been sold by Beyond Auctioneers to Grain Industries Ltd at a total cost of Sh217.48 million, which is way below the market value of Sh730.3 million.

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