A Mumias Sugar creditor has urged court to kick out Ugandan firm Sarrai Group from the miller's premises.
Jackline Kimeto, who says she is owed Sh76m, said an application by Sarrai to suspend an earlier order cancelling its lease of Mumias was in bad faith and an attempt to scuttle the factory's revival.
“Sarrai’s application is a gross abuse of this honourable court’s process and has been brought in bad faith to scuttle the administration process and is merely intended to delay and clog the processes of this court,” she said.
Ms Kemunto's rebuttal comes days after the Ugandan firm obtained interim orders that suspended an earlier ruling that cancelled Sarrai's lease of Mumias Sugar. High Court judge Alfred Mabeya cancelled the 20-year lease after finding that the company won the bid without due procedure. He also removed Ponangipalli Ramana Rao as administrator of Mumias, saying the process he followed to award the lease was not clear to all bidders.
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“Accordingly, the lease made to Sarrai Group on December 22, 2021, is hereby nullified and Sarrai Group ordered to fully vacate the premises of Mumias,” the court ruled.
Mr Mabeya at the same time appointed Kereto Marima to be the new administrator of Mumias and directed Mr Rao to hand it over within seven days.
“Rao as receiver-manager to cooperate with Marima and ensure smooth administration of Mumias and by default, the receivership shall stand suspended during the duration of the administration,” he said.
Mr Rao challenged the decision.
