MUMIAS SUGAR COMPANY LIMITED A
"Pending the delivery of the ruling on
The Ugandan sugar processor suffered a major blow in May after the court invalidated its lease granted in
Sarrai was ordered to immediately vacate the premises of
The firm had already began works and even pumped money into reviving the collapsed sugar mill but the court stopped the process after several bidders challenge the lease award.
"Accordingly, the lease made to
"Rao as receiver manager to cooperate with Marima and ensure smooth administration of Mumias and by default the receivership shall stand suspended during the duration of the administration," he said.
Rao challenged the decision saying it was not right for the court to appoint him as an administrator and receiver at the same time.
The court said the only irresistible conclusion drawn is that Rao is an unwilling suitor as he was aggrieved by his appointment as an administrator yet he was already a receiver.
The judge said if Rao found it difficult to juggle the two hats, he should have gone back to the court to seek further directions.
"Rao was simply running away from his responsibility as an administrator and decided to focus on receivership," he said.
Tumaz and Tumaz enterprises, the company associated with Mwale City investor
The second highest bid was Kruman Finances with Sh19.7 billion for a 25-year lease.
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