Sarrai Group officials risk jail term after losing appeal case

Kimeto also wants Court of Appeal President Justice Asike Makhandia investigated.

In Summary
  • Sarbjit Singh Rai, Rakesh Kumar and Stephen Kihumba were on Friday, April 28 found to be in contempt of court orders issued on July 28, 2022, regarding the Mumias Sugar lease case.
  • While delivering the ruling, High Court judge Justice Donna Chepkwony ordered the accused to pay Sh100, 000 or serve six months in jail.
Mumias Sugar Company in Kakamega.
MANAGEMENT ISSUES: Mumias Sugar Company in Kakamega.
Image: FILE

Uganda-based Sarrai Group officials suffered a major blow on Tuesday, May 16 after a three-judge bench declined to hear their appeal to stop impending arrest over contempt of court.

Sarbjit Singh Rai, Rakesh Kumar and Stephen Kihumba were on Friday, April 28 found to be in contempt of court orders issued on July 28, 2022, regarding the Mumias Sugar lease case.

While delivering the ruling, High Court judge Justice Donna Chepkwony ordered the accused to pay Sh100, 000 or serve six months in jail.

“Sarbjit Singh Rai, Rakesh Kumar and Stephen Kihumba must appear before the presiding judge on 18th May 2023 to show cause why they should not be committed to civil jail for six (6) months,” the judge ruled.

The Court of Appeal judges’ decision came a day after Mumias Sugar Company creditor Jackline Kimeto wrote to Chief Justice Martha Koome and Judicial Service Commission (JSC) criticizing the way the Court of Appeal has handled the lease case.

She said they have been dragged into circus and controversy by the Court of Appeal in Civil Application No. E185 of 2023 — Sarrai Group Limited v Kimeto & Associates & others.

“The hearing date fixed for E 185 does not even allow the parties to comply with the directions of the court as it is issued before the timelines in the directions lapse thereby compromising the 1" Respondent's right to be heard.

“Furthermore, it is not clear how decisions were made between Friday evening and Sunday morning to issue a hearing date in this matter for Tuesday 16' May 2023 giving parties only 1-day notice of the hearing of the Application. In this history of judicial proceedings in this country one will struggle to find a court that gives a respondent a single day’s notice to appear for hearing,” Kimeto indicated in the letter.

Kimeto also wants Court of Appeal President Justice Asike Makhandia investigated.

“I am requesting the Judicial Service Commission to urgently cause investigations to be conducted into Mr Justice Makhandia's actions and conduct as Acting President of the Court of Appeal and in particular, on how Civil Application Nos. E185 and E187 were fixed for hearing on a Sunday and even before E187 was served, or directions issued in respect of its hearing and filing of responses; and notwithstanding that the filing timelines imposed in E185 had not lapsed,” she added.

In the July 28, 2022 ruling, High Court in Nairobi directed Sarrai Group to stop further operations at Mumias Sugar Company.

The court also directed Rai Cement, an affiliate of the Sarrai Group, to withdraw personnel deployed at Mumias’ premises until the case lodged in court on Thursday, July 28, 2023, is heard and determined.

“Pending the hearing and determination of this application, Sarrai Group Limited, its directors, agents, employees, servants, subsidiaries and other affiliates including Mumias Sugar (2021) Limited, Rai Cement Limited be ordered to cease and desist any activity 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 Limited,” Justice Wilfrida Okwany ruled.

The court further upheld its judgement issued on April 14, 2022, that nullified the lease granted to Sarrai Group on December 22, 2021.

“This court issue order restraining Sarrai Group and its aforementioned agents or any other agents from commencing, continuing, or undertaking any activity under the lease dated 22nd December 2021,” the judge stated.

The court also ordered the company to return all the assets belonging to Mumias Sugar Company and directed police in Mumias to facilitate the execution of the directive.

“The Officer Commanding Mumias Sugar Police Station be and is hereby ordered to facilitate the safe return of all vandalized and looted assets of Mumias Sugar in accordance with these orders,” the judge added.

During the hearing, creditors Khaminwa and Khaminwa Advocates and lawyer Jackline Chepkemoi Kimeto accused Sarrai Group of not obeying the court order that stopped it from operating the Kakamega-based sugar mill.

“The continuing contempt of the court orders by the contemnors scandalizes and lowers the judicial authority and the dignity of the court.

“It is essential for the maintenance of the rule of law and order that the authority and the dignity of the Courts of the Republic of Kenya are upheld at all times and the contemnors blatant disobedience of the orders of the court ought not to be countenanced,” Kimeto said while making her submissions.

During the hearing, the creditors presented photographic evidence that showed Sarrai Group personnel transporting equipment belonging to Mumias Sugar Company.

The photos presented also showed vandalized equipment, which the lawyer noted was wasting away.

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