The High Court has ruled that Uganda’s Sarrai Group Limited should keep off from Mumias Sugar Company lease until a petition challenging its operations is heard and determined.
In a ruling yesterday, court directed that the application by Sarrai and Vertox be heard together.
Both will be disposed of by way of written submissions.
Interim orders were also extended to June 8, 2022 but the same will not affect the duties of administrator in office, Rao, who is still expected to handover the administration duties to a new administrator cleared by the court.
Kerato Marima was appointed last month to replace Ponangipalli Rao who was relieved off his duties by Justice Alfred Mabeya.
However, last week Justice Dorah Chepkwony stopped the execution Mabeya’s judgement pending the hearing of an application by Sarrai challenging it.
Yesterday, Justice Mabeya extended the orders that allowed Sarrai Group to continue operations in the sugar mill but said it does not reinstate Rao and so Marima should continue as the new administrator.
“I have seen the order, What the order has done is to maintain the lease. It doesn’t stop the removal of the previous administrator. Kereto Marima is expected to have taken over the running of the affairs,” the judge said.
The court said Marima as the new administrator should run the affairs of the company as directed in his earlier judgement.
The court will issue further direction in June 8.