Mumbai-based Gazebo has obtained a court order allowing it to recover the Sh67 million debt from RVR’s Barclays Bank Plaza branch account, a move the railway management firm is now fighting to reverse.
RVR wants Justice Grace Nzioka to lift the order she issued allowing the attachment of its account, as it wants to be allowed to settle any admitted debt to Gazebo in installments so as not to hamper its operations.
“RVR has to date breached the contract and treated Gazebo’s claim as a non-issue. Gazebo is aware through media outlets that the concession between RVR and Kenya Railways has been terminated. The RVR has not disclosed this information to Gazebo but has hidden it so as to defeat Gazebo’s claim.”
“RVR was only giving empty promises that they are willing to settle the debt, taking Gazebo in circles but in the end they have not settled the debt,” Gazebo vice president Shusil Kapoor says.
The RVR, however, argues that Kenya’s courts have no jurisdiction to hear disputes arising from the deal with Gazebo.
“Under clause 18.2 of the agreement it was agreed that in the event that parties failed to amicably settle disputes arising from the agreement, such disputes would be referred to the courts of England and Wales for final resolution,” says the RVR.
