Appeals Court Suspends Jail Orders Against Billionaire Rai in Mumias Sugar Row
The Court of Appeal in Nairobi has suspended the High Court’s initial decision to charge Sarrai Group Limited of Uganda with contempt of court.
Sarbit Singh Rai, Rakesh Kumar, and Stephen Kihumba were charged with contempt of court for continuing to operate Mumias Sugar Company (MSC) despite a court order to cease operations.
The appellate court ruled on October 13, 2023, however, that the company was not served with the orders prohibiting their operations in Mumias company.
The court of appeal criticized the decision of the high court because some justices withdrew from the case without valid reasons.
“In the circumstances, the Notice of Motion dated 10th May 2023 is hereby allowed. There will be a stay of execution of the ruling and order of the High Court dated 27th April 2023, as well as a stay of further proceedings, pending the hearing and determination of the applicant’s appeal,” Court of Appeal ruled.
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The High Court ordered that Sarrai Group pay Ksh100,000 and that Sarbit Singh Rai, Rakesh Bvats, and Stephen Kihumba present in court on May 18, 2023 be sentenced to jail for contempt.
The high court issued orders prohibiting the dismantling, gutting, removal, transfer, or disposal of any of Mumias’ movable or immovable assets.
In addition, the court ordered the return of all assets, apparatus, and equipment that had been removed from Mumias’s premises.
It ordered Sarrai Group, its agents, employees, servants, subsidiaries, or affiliates to cease any activities, including the operation of machinery, dismantling, vandalizing machinery, removing assets, and any other activity of any kind stored and located on the premises of Mimias Sugar Company.
In addition, the court ordered the Mumias Police Station to facilitate the return of all MSC assets in a secure manner.
Since the awarding of the lease, the cases involving those who contested the procedure have been embroiled in a protracted legal battle.
Appeals Court Suspends Jail Orders Against Billionaire Rai in Mumias Sugar Row
