The Mumias Outgrowers Company (1998) has expressed the intention to have the case filed by five farmers challenging leasing of Mumias Sugar Company referred to the Chief Justice. The company further wants the case to empanel a bench of not less than three judges to hear the matter.
In an urgent application filed in court, Mumias Outgrowers argue that the case raises substantial questions of law and of great public concern. In the application, Mumias Outgrowers argue that in view of the sensitivity of the matter, it is prudent to shield the court from undue pressure by having the matter heard by a bench of three judges as opposed to a single judge.
“The first respondent (Ponangipali Venkata Ramana Rao) has alleged he relied on the decision of this court issued on 19th November 2021 in Insolvency Petition to illegally lease and hand over possession of the assets of Mumias Sugar Company Limited to the 6th defendant (Sarrai Group) without involvement of other creditors despite having been appointed an administrator,” stated the Company’s lawyer, Ms. Maureen Odeck.
When the urgent application was brought to the attention of Justice Mabeya, the judge directed the parties in the case to respond within 23 hours. He further said that the application should be heard first, as it has the net effect of disrupting what the court does. The application will be heard before the judge on Tuesday at 12.30pm.
On February 4th, 2022, Justice Mabeya directed the case by the five farmers to be heard from February 14th to 17th, 2022 saying it ought to be determined expeditiously. The farmers, Lambert Lwanga Ogochi, Augustino Ochacha Saba, Prisca Okwanko Ochacha, Robert Mudinyu Magero and Wycliffe Barasa Ng’onga went to court in January 2022 and obtained orders stopping operations at the sugar milling plant.
The defendants in the case are Ponangipali Venkata Ramana Rao, KCB Bank Kenya Limited, the Attorney General, Cabinet Secretary Ministry of Agriculture, Livestock and Fisheries, Competition Authority of Kenya, Sarrai Group Limited, Chief Land Registrar, County Government of Kakamega and Capital Markets Authority.
The County Government of Kakamega has raised a preliminary objection to the suit saying it is misconceived, incompetent and does not show reasonable cause of action against the county. On the other hand, the Competition Authority of Kenya (CAK) says no merger approval has been submitted to them in relation to leasing of the assets of Mumias Sugar.