Bid to revive Mumias Sugar hit a dead end over Rao, Sarrai Group legal clash
Attempts to revive Mumias Sugar Company face a fresh battle after the Receiver Manager said the current plans were a violation of a recent court ruling.
Justice Wilfrida Okwany last week directed that all activities that are going on at the company should be halted until a case filed by creditors was heard and determined.
Ponangipalli Venkata Ramana-Rao raised concerns over the activities of the Sarrai Group Limited which secured a contract to revive the once East and Central Africa’s largest miller.
Rao has written to Sarrai Group stating that reviving milling at Mumias is in bad taste owing to the several applications before the High Court regarding the miller.
“We would like to hear from you on whether your client is indeed planning to commence operation of the sugar milling plant and, if so, the basis on which your client intends to do this, considering the status of the ongoing litigation. This would also be beyond what was intended in handing over possession,” read the letter.
Through lawyer George Kashindi, the Receiver Manager warned the Ugandan firm not to carry on with their operations before the cases in court were concluded.
He stated that Sarrai’s responsibilities at Mumias were simply to inspect the Plant and initiate a cleaning exercise.
Lawyer Jackline Kimeto, also for the receiver, has since written to the investor’s legal representative Wesley Gichaba warning he would be held liable for any losses or damages that would be meted to the miller’s assets.
She accused her colleague of allegedly directing his client to disobey court orders. The lawyer was responding to her colleague who wrote to her defending his client.
Gichaba had said Justice Okwany’s orders 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.
