JUDGES RENDER RULING OVER MIWANI SUGAR COMPANY ACQUISITION

BY JEFF OTIENO

Appellate Judges Justice R.S.C. Omollo, Emanuel E. O. O’kubasu and J.G. Nyamu have made a crucial ruling in Kisumu over the controversial sale of the Moribund Miwani Sugar Company.

In a civil suit number 261 of 2008 pitting applicants Miwani Sugar Company (1989) Ltd, which is in receivership, versus Negandra Sexana 1st respondent, and CROSSLEY HOLDINGS LTD as the other respondent, the appellate judges ruled in favour of the defendants.

The applicants were seeking orders to strike out an application by defendants on the grounds that the record of appeal, and the appeal itself, had been filed out of time, and without leave of court. Second technicality was that the record of appeal didn’t contain all the notes of superior court.

In his application, David Otieno for the receivers, urged the court in his affidavit, citing sequence of events leading to the filing of the application, as enough justification for the whole thing to be struck out.

In his part, Pheroz Nowrojee for defendants, submitted that there was no delay in filling the appeal, but added that even if there was a delay, sections 3A and 3B of the appellate Jurisdiction Act would save the situation.

“In view of the foregoing, we are satisfied that the appeal which is sought to be struck out was not filed out of time”, the judges ruled.

“Mr. David Otieno urged us to consider this application under the old rules but even if we do so, as earlier demonstrated, it lacks merit”, they said.

“As for the costs of application, we are of the view that these shall be in the appeal during full hearing”, they concluded.

The battle in court is a culmination of a protest, where the receiver and some stakeholders have been harboring a feeling that the auction of the once giant miller was unprocedurally done.

In the said auction, CROSSLEY HOLDINGS LTD, which is associated with the wealthy Asian family in Kisumu, with vast experience in sugar industry, was said to be the highest bidder, but the other quarters were reading mischief in the whole process, and thus the protracted legal battle to date.

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