The High Court has declined to resurrect the insolvency suit against Mumias Sugar Company, dismissing claims of coercion by lawyer Jackline Kimeto, who sought to withdraw the case.
Justice Josephine Mong’are emphasized the court’s inability to reinstate a withdrawn suit, stating, “Once a suit has been withdrawn, the court lacks the authority to reinstate it.” The judge outlined that the appropriate course of action for Kimeto would be to initiate a fresh case.
Kimeto alleged facing intimidation and coercion, leading her to file a notice withdrawing the case on September 1. Despite retracting her decision a day later, the judge clarified that once a notice of withdrawal is submitted, it nullifies the court’s jurisdiction to entertain further filings related to the case.
“An application to reinstate a suit after the same has been withdrawn…cannot therefore be sustained,” ruled Justice Mong’are.
The lawyer had initially filed the insolvency petition against Mumias Sugar in 2019, citing the company’s failure to settle a debt of KES 76 million owed to her. She also sought the court’s intervention in appointing an administrator.
Ponagipalli Venkatta Ramama Rao, the KCB-appointed receiver manager, faced removal amid allegations of mishandling the process. Kimeto’s withdrawal of the suit coincided with President William Ruto’s warning to unidentified sugar cartels in August.
Allegations emerged that billionaire Jaswant Rai proposed settling Kimeto’s debt as a condition for withdrawing the insolvency petition. Despite filing the notice for withdrawal, Kimeto stated that the debt remains unsettled, viewing the settlement proposal as a result of state agents’ blackmail.
Justice Mong’are highlighted the absence of provisions in the Civil Procedure Rules for reinstating a suit following withdrawal, stating, “Once a suit is discontinued in whichever manner howsoever, it ceases to exist.”
The ruling’s implications on other creditors, including Vartox Res, remain unspecified. The refusal to revive the insolvency suit marks a significant legal development in the ongoing Mumias Sugar Company saga, prompting stakeholders and creditors to seek alternative paths to address their concerns against the troubled sugar miller.
