• Rao questioned the continued stay of Sarrai in Mumias, and the motive of its struggle to revive Mumias before the cases are heard and determined.
• Lawyer Jackeline Kimeto has since written to Sarrai Group’s lawyer Wesley Gichaba warning them that they will be held liable for any loss and damage of assets visited upon Mumias.
Image: HILTON OTENYO
Sarrai Group Limited is still carrying out activities in Mumias Sugar Company despite a court order barring them from the company.
According to the receiver manager and administrator Ponangipalli Venkata Ramana Rao, Sarrai was only supposed to inspect and clean the factory.
"This would also be beyond what was intended in handing over possession. By letter dated December 22, 2021, the receiver and administrator allowed your client access to the leased assets for cleaning and inspection purposes," Rao's lawyer George Kashindi said.
Rao questioned the continued stay of Sarrai in Mumias, and the motive of its struggle to revive Mumias before the cases are heard and determined.
On Saturday, the Ugandan Company was still carrying on operations in the sugar factory, two weeks after the sugarcane crushing began.
Lawyer Jackeline Kimeto has since written to Sarrai Group’s lawyer Wesley Gichaba warning them that they will be held liable for any loss and damage of assets visited upon Mumias.
In a letter dated July 28, Kimeto further threatened to file a complaint against Gichaba the Law Society Disciplinary Tribunal for disobeying a court order.
"Court orders must be obeyed and it is very disheartening to see the disobedience of court orders being perpetrated by an officer of the court. Please also note that you are not personally immune to contempt of court proceedings which shall be commencing in due course," the letter reads.
Sarrai Group was ordered to cease all operations in Mumias, pending the hearing and determination of the case in the High Court.
The orders were issued by Justice Wifrida Okwany on Thursday.
"Pending the hearing and determination of this application, Sarrai Group Limited, its agents, employees, servants, subsidiaries or other affiliates including Mumias Sugar (2021) Limited and Rai Cement Limited be ordered to cease any and all activities including the operation of machinery, dismantling, vandalism of machinery, removal of assets or any other activity of whatever nature stored and situated within the premises of Mumias Sugar Company Limited," the order read.
This came after the creditors alleged that the Ugandan firm intended to smuggle sugar from Uganda using Mumias Sugar packaging.
However, Gichaba wrote to Kimeto stating that Okwany's order did not set aside or stay the orders of April 25.
"We wish to confirm that the court did not set aside or stay its own orders of April 25, 2022. The orders (Stay on cancellation of lease) are in place and still effective till a ruling on your application is delivered on December 15, 2022, as directed by the court," the letter read.
"The ruling of the honourable Judge of July 28, 2022, did not interfere in any way or set aside the orders of the court of appeal nor the order of April 25, 2022, of the same court. They stand tall being a superior court."