Brewer’s bid to stop Sh1.7b court award flops

[Photo: Courtesy]
Alcoholic drinks maker Heineken East Africa has failed in its bid to block a Sh1.7 billion court award to its former distributor.

The High court has declined to issue orders stopping the execution of a judgement against Heineken which required it to pay Maxam Ltd the said amount after the latter contested the cancellation of its distribution contract.

Lawyers representing Heineken argued that the company has no assets.

"We have filed a notice of appeal and we shall be prosecuting it expeditiously. We ask the court to come at the earliest day to have the matter heard. During that time, we pray that a stay be granted and we are ready to provide security,” said the brewer's lawyers.

Lawyer Philip Nyachoti representing Maxam said Heineken had deliberately declined to obey the orders issued by Justice James Makau last month. “This is impunity by the company, they deliberately decided not to obey the orders issued on July 29.,” said Nyachoti.

Justice Wilfrida Okwani, however, declined to grant the beer maker its wish and directed that it serve its application to the respondents.

Last month, Justice Makau awarded Maxam Sh1.7 billion as special damages for loss of business after its distribution agreement with Heineken was terminated. The matter will be heard on September 17.

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Heineken East AfricaHigh court