Court Issues Last Adjournment in Suit Pitting Mombasa Tycoon Mohammed Jaffer Against Atta Kenya Ltd
Grain Bulk Handlers, a company associated with Mombasa tycoon Mohammed Jaffer, has, for the second time, failed to appear in court regarding a lawsuit alleging the illegal auction of wheat belonging to Atta Ltd, valued at Ksh 730 million.
Mombasa High Court Judge Florence Macharia was unable to proceed with the hearing after being informed by lawyer Felix Keating that the firm’s counsel was absent due to a relative’s funeral.
However, the court stated that this would be the last adjournment granted to Grain Bulk after learning that the firm’s lawyer had faked the death of a close relative to avoid the hearing.
“It is too unfortunate that someone can fake the death of a relative; if he doesn’t appear next time, I will enter a judgment in favour of the petitioner,” Judge Macharia remarked.
Atta’s lawyer, Ochieng Odipo, informed Justice Macharia that this was the second time the firm’s lawyer had failed to appear and requested reimbursement for their travel costs from Grain Bulk.
Atta Kenya has sued Grain Bulk Handlers Ltd (now Bulk Stream) and others for illegally selling their wheat. According to Atta Kenya Limited, the company had an agreement with Louis Dreyfus Company Limited to purchase 38,500 metric tons of milling wheat.
Of this, 29,500 metric tons were to be delivered to Atta Kenya Limited, with payment for the shipment made in June 2014 to LDCL, totalling $7.565 million (Ksh 1.1 billion).
However, the plaintiff fell behind in paying the required customs duties and storage fees owed to the Commissioner of Customs and Border Control, as well as to Grain Bulk Handlers.
While the matter was under review, Atta Kenya Limited received a letter indicating that the consignment had been sold by Beyond Auctioneers to Grain Industries Ltd for Ksh 217.48 million, a figure greatly below the market value of Ksh 730.3 million.
Two witnesses from the sued companies were questioned about how the auction price was determined and who authorized the sale of the milling wheat.
Atta’s lawyer, Mila Bwire, sought to clarify what transpired during the receivership of the wheat consignment leading to its sale.
The matter is now set for mention on November 12 this year.
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