The High Court has referred a dispute between Mastermind Tobacco (K) Ltd and a Migori farmer to a magistrate after declining to stop the case as sought by the cigarette maker.
Justice Roselyn Wendoh dismissed the application by Mastermind to stop the proceedings started by Joseph Wambura Maroa, who is seeking Sh2 million for the supply of the commodity.
The judge said the cigarette maker was aware of the dispute but chose not to take the necessary steps to resolve the dispute but was awakened when the farmer filed the case before a magistrate.
Migori senior principal magistrate Johnstone Munguti had in September last year dismissed an application by Mastermind challenging the case, forcing the company to rush to the High Court.
“This court fails to see the good faith and or intentions the appellant (Mastermind) has demonstrated in commencing the dispute resolution process. It is approximately three years since they were served with the demand letter and the appellant has been awakened by the suit filed in court by the respondent,” the judge said.
Justice Wendoh said the matter should be taken back to the trial magistrate for directions, and if need be, the parties to engage a mediator.
“In default, the trial court is properly seized of the matter and should proceed to hear the parties,” the judge said.
Mr Moroa said he entered into an agreement with Mastermind on July 10, 2016, to grow and sell tobacco to the company.
The farmer said he wrote to the company in August 2020 demanding more than Sh2 million and followed it up with a letter to the Chartered Institute of Arbitrators but got no response from the firm.
A clause in the agreement, the farmer said, stated that any dispute arising should be settled through negotiations and if there is no settlement, the matter is referred to arbitration.
And after getting no response for more than three years, Mr Moroa moved to court.
Justice Wendoh gave the parties a chance of settling the matter through the Judiciary’s court-annexed mediation.
