The Court of Appeal in Nairobi has decided to suspend the High Court’s initial orders that charged Uganda-based Sarrai Group Limited with contempt of court.
Sarbit Singh Rai, Rakesh Kumar, and Stephen Kihumba faced allegations of contempt of court for continuing operations at Mumias Sugar Company (MSC). However, on October 13, 2023, the Court of Appeal ruled that the company had not been properly served with the orders prohibiting their activities at Mumias Company. Additionally, the appellate court criticized the High Court’s decision, citing the withdrawal of some judges from the case without sufficient justification.
As a result, the Court of Appeal allowed the Notice of Motion dated May 10, 2023. They granted a stay of execution for the High Court’s ruling and order dated April 27, 2023, as well as a suspension of further legal proceedings until the applicant’s appeal is heard and determined.
The High Court had previously ordered Sarrai Group to pay Ksh100,000 in fines and set a court date for Sarbit Singh Rai, Rakesh Bvats, and Stephen Kihumba to be sentenced to jail for their contempt. The High Court’s orders also prohibited the dismantling, stripping, removing, transferring, or disposing of any movable or immovable assets of Mumias. They further mandated the return of any moveable assets, machinery, or equipment that had been taken from the Mumias premises.
The court directed Sarrai Group, its agents, employees, servants, subsidiaries, or affiliates to cease all activities, including the operation of machinery, dismantling, vandalism, asset removal, or any other actions within the Mumias Sugar Company premises. Furthermore, the Mumias Police Station was ordered to facilitate the safe return of all MSC assets.
The lease of Mumias Sugar Company has been the subject of a prolonged legal dispute, with various parties challenging the process.
