Not yet over for embattled billionaire industrialist Jaswant Rai after Ruto warning
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Court orders billionaire Jaswant Rai to pay his rival sugar company Ksh2 billion in damages
Court orders billionaire Jaswant Rai to pay his rival sugar company Ksh2 billion in damages.
Embattled Jaswant Rai, a millionaire entrepreneur, has been ordered by the High Court to pay Butali Sugar Limited Ksh2 billion, Ksh508 million in damages, and a 12 percent annual interest rate.
In the judgment, Justice Alfred Mabeya ordered Rai to pay Ksh91.4 million as an annual interest on the damages, which will be calculated over a period of 17 years.
As a result of Justice Mabeya’s ruling, Rai would shell out one of the most expensive legal settlements of Ksh1.5 billion in interest and Ksh507.8 million in compensatory damages.
“The plaintiff’s claim was for loss incurred as a consequence of alleged unlawful interference of its business by the defendants. The plaintiff alleged that on 13/4/2005, it was registered by the 2nd defendant to construct and operate a sugar mill in accordance with Part III section 14 of the Sugar Act, 2000,” Justice Mabeya.
“In pursuance thereof, the court granted a stay of proceedings on the 1st defendant’s undertaking as to damages. That the said order stayed its operations, transactions, and business in connection with its objects and undertakings as a registered miller.”
Consequently, Rai will also pay the cost of litigation after Butali Sugar Company convinced the court that the billionaire’s actions amounted to unlawful interference with its business and investment.
“It is clear that the claim by the plaintiff arises out of the undertaking given by the 1st defendant on 1/8/2005. However, there is admission in the defence of the 2nd defendant that it did make representations and assurances to the 1st defendant as alleged.
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“Firstly, it cannot lie in the month of the 2nd defendant that it can make representations and assurances and make them subject to rescission. That can only hold if those representations were made without prejudice at the time they were so made. That is not the case here,” the court ordered.
In a 2007 lawsuit against Rai’s company, Butali Sugar Company won injunctions barring further meddling by the business adversary.
A later agreement between the two companies stated that Kenya Sugar Board was not permitted to renew licenses for Butali or any other miller operating within a 24-kilometer range of the company.
The deal allowed Rai’s company to grow significantly in the area, nearly driving Butali Sugar Company out of business.
As a result of Rai’s company’s quick expansion, Butali Sugar Company filed a lawsuit before the High Court claiming damages.
The ruling comes following a warning by President William Ruto to Rai among others for sabotaging the revival of the sugar sector in Kenya.
While speaking during his Western Kenya development trip, Ruto vowed not to sit back and watch a few people exploit Kenyans economically.
He specifically singled out Rai (Jaswant Rai) of the Rai Group for sabotaging the revival of Mumias Sugar Company.
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