Judge declines to hear Rao’s application on Mumias Sugar lease case

Mabeya revoked the appointment of Ramana Rao as the administrator and receiver manager

In Summary

•Justice Chepkwony said his court had no jurisdiction to hear the application and instead directed Rao’s lawyers to move to the Court of Appeal to challenge the order issued by High Court judge Justice Alfred Mabeya on April 14, 2022.

•In the April ruling, Justice Mabeya revoked the appointment of Ramana Rao as the administrator and receiver manager of the sugar miller over non-compliance with the terms of the job.

Court gavel
Court gavel
Image: FILE

High Court judge Justice Donna Chepkwony on Friday declined to hear an application filed by Ponangipalli Ramana Rao seeking to reverse an order that stopped him from being the administrator of the Mumias Sugar Company.

Justice Chepkwony said his court had no jurisdiction to hear the application and instead directed Rao’s lawyers to move to the Court of Appeal to challenge the order issued by High Court judge Justice Alfred Mabeya on April 14, 2022.

In the April ruling, Justice Mabeya revoked the appointment of Ramana Rao as the administrator and receiver manager of the sugar miller over non-compliance with the terms of the job.

The judge further appointed Kereto Marima to be the new administrator of the company and directed Rao to hand it over within seven days.

“Mr Ponangipalli Venkata Ramana Rao to formerly and in an orderly manner hand over to Kereto Marima the full and unhindered control and administration of Mumias within 7 days of the date hereof.

“Mr. Panangipalli Venkata Remana Rao, as receiver manager appointed by KCB to cooperate with Kereto Marima and ensure the smooth administration of Mumias. In default the receivership shall stand suspended during the duration of the administration,” Justice Mabeya stated in his ruling.

Justice Chepkwony, however, agreed to give priority to a petition seeking to have more than one judge listen to the Mumias Sugar issue.

In the case, creditor Jackline Kimeto is accusing Sarrai Group of running Mumias despite court orders issued by Justice Mabeya cancelling the 20-year lease granted to it by KCB Bank receiver manager Ramana Rao.

The petition will be mentioned on February 2, 2023, to confirm compliance and highlight submissions.

The firm is accused of carrying out operations at the Mumias Sugar company despite the existence of a court order directing the company managers and its staff to cease operations.

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