The Kenya Data Network (KDN) has lost an appeal to restrain a rival company from going ahead with a case seeking to wind up the internet firm.
The High Court on Friday ordered KDN to deposit Sh400 million in a joint account with Soliton Telemec pending the determination of the case.
Engineering firm Soliton Telemec is demanding Sh678 million from KDN for laying the inland fibre optic cable from Thika through Garissa to Mombasa in 2007, but the internet company claimed it was being overcharged for the job and only paid part of the invoiced fee.
The firm in October demanded the winding up of KDN for alleged non- payment of Sh400 million, which was challenged by the internet firm in November before Justice Muga Apondi dismissed it.
“Given the above analysis, I hereby dismiss the application dated November 3, 2010 since it has no merit ,” said Mr Apondi on his August 30 ruling.
This means that the KDN winding up case filed by Soliton Telemec can now go on.
The judge directed the internet firm to deposit the disputed sum in a joint account within 30 days under the names of the advocates representing the two firms.
Murgor and Murgor Advocates is holding brief for KDN while Ahmednasir Abdikadir and Company is representing Soliton Telemec.