- Sarrai has appealed the ruling, saying they were not given a chance to defend themselves as they were not enjoined.
- It says it stands to suffer substantial loss of the investment of Sh5.6 billion in accordance with the cancelled lease.
Image: HILTON OTENYO
Ugandan firm Sarrai Group got a reprieve on Monday after the court suspended the order that nullified the Mumias lease issued to it.
Sarrai was awarded the lease in December last year in a bid to revive the sugar mill but Justice Alfred Mabeya revoked the lease and ordered them to vacate the premises.
However, Justice Dorothy Chepkwony stayed the execution of the judgement, pending the hearing of the application by Sarrrai challenging the judgement.
Through lawyer Wesley Gichaba, Sarrai has appealed the ruling, saying they were not given a chance to defend themselves as they were not enjoined.
Gichaba said Sarrai stands to suffer substantial loss of the investment of Sh5.6 billion in accordance with the cancelled lease together with the loss of the deposit paid as security without getting a chance to be heard on the merits of its case.
The lawyer said one of the parties in the matter, Vartox, was joined to the proceedings, but the court did not give any reasons for denying Sarrai the opportunity to respond to the applications.
“Notwithstanding that in the court ruling [on] April 14 the revocation, cancellation and nullification of the lease held by Sarrai is hinged in the application by Kimetto and Associates Advocates,” the application reads.
They have faulted the court for failing to enjoin Sarrai to the applications by Vartox as well as its failure to allow its counsel to respond to any submissions made against it in the said proceedings.
The court subsequently issued the order revoking, cancelling and nullifying the lease awarded to Sarrai group thereby condemning them unheard, contrary to the rules of natural justice and the right to fair hearing.
The lawyer said Vartox, which is a party to the court, was allowed to submit on all its prayers while it was not joined as a party to these proceedings and was only joined in the ruling issued on April 4.
“The respondents will not suffer any harm or prejudice by the stay of execution orders and the proceedings herein that cannot be compensated,” the application reads.
The case will be mentioned before Justice Mabeya on May 4.
(edited by Amol Awuor)