Justice Alfred Mabeya said he was not convinced to lift the order as requested by several creditors as well as Dubai based Vartox Resources Inc and West Kenya.
The judge also clarified that the court-appointed administrator Kereto Marima was the man in charge of running the affairs of Mumias after he ordered the removal of PVR Rao last month.
Several creditors had protested the suspension of the judgment that cancelled Sarrai’s lease saying the Uganda-based company obtained the order without disclosing all facts to the court.
Sarrai Group of Uganda on Wednesday won a reprieve after the High Court extended an order suspending a decision cancelling its 20-year-lease to run ailing Mumias Sugar Company #ticker:MSC .
Justice Alfred Mabeya said he was not convinced to lift the order as requested by several creditors as well as Dubai based Vartox Resources Inc and West Kenya. He extended the freeze for at least one month to allow Sarrai to prepare to argue against its removal.
The judge also clarified that the court-appointed administrator Kereto Marima was the man in charge of running the affairs of Mumias after he ordered the removal of PVR Rao last month.
“The court is not persuaded to vacate the order granted to Sarrai Group,” the judge ruled and directed the case to be heard on June 8.
Several creditors had protested the suspension of the judgment that cancelled Sarrai’s lease saying the Uganda-based company obtained the order without disclosing all facts to the court.
West Kenya also opposed the move saying the handing over of the premises had already taken place- and bringing Sarrai back through the extension of the order, puts in limbo the conduct of the administrator.
The court fight underlines the family fallout between the billionaire Rai brothers after Jaswant Singh Rai, the chairman of Rai Group, opposed the lucrative leasing contract from his younger sibling — Sarbi Singh Rai.
West Kenya through lawyer Martin Gitonga said it was not true that Sarai Group was condemned unheard.
Justice Dorah Chepkwony froze the revocation of the lease a week after it was cancelled by Justice Mabeya following an application by Sarrai Group.
The company argued that it stands to suffer an investment loss of Sh5.6 billion if the lease remains cancelled.
The company’s lawyer Wesley Gichaba said Sarrai intends to file an appeal, which will be rendered useless unless the order is suspended.
The court later cancelled the lease and removed Mr Rao as the administrator saying it only favoured KCB #ticker:KCB and unfairly prejudiced other creditors.
