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Corporate

KenolKobil allowed to challenge Sh386m award to Nairobi businessman

Kenol Kobil limited group managing director David Ohana. FILE PHOTO | NMG
Kenol Kobil limited group managing director David Ohana. FILE PHOTO | NMG 

Oil marketer KenolKobil has been allowed by the commercial court to defend itself against a Sh386 million award for breach of a lease contract.

High Court Judge Fred Ochieng allowed the NSE-listed firm to file evidence in the case applied by Mr Jayantilal Dharamshi Gosirani who has the court's permission to use means within his disposal to secure payment of the award.

Justice Ochieng allowed the law firm of Kaplan & Stratton (for KenolKobil) to enter appearance in the case filed by lawyer Rumba Kinuthia (for Mr Gosirani) in his bid to get the oil company to pay him for severing a contract entered into in 2001 to operate a fuel station along Murang’a Road for a period of 15 years.

When the case came up for directions on Wednesday, Kaplan & Stratton sought the court's permission to enter evidence in the claim by Mr Gosirani.

Justice Ochieng further directed the oil company to file evidence to respond to the Sh386 million filed by Mr Kinuthia on behalf of the businessman who was violently removed from the premises of Kobil on the night of May 31, 2005.

The judge allowed all the parties to appear before the High Court's taxing master for tabulation on the bill of costs.

Mr Gosirani filed the application to be allowed to attach the property of KenolKobil for illegal termination of contract to operate a business at its premises for 15 years.

Lady Justice Joyce Khaminwa (now deceased) had awarded Mr Gosirani costs to the tune of Sh97 million plus interests at court rates in 2000, with the court upholding her ruling this week.

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