[ad_1]
Kenya’s Supreme Court on Thursday refused to suspend an order requiring beer maker Heineken to pay Sh1.7 billion to Kenyan distributors for infringing its distribution rights in the country.
Instead, Deputy Chief Justice Philomena Mwilu ordered the international company to provide court documents to Maxam Ltd and appear in court on July 5.
Heineken enters Supreme Court after court The Court of Appeal and the High Court ruled that it had unlawfully terminated Maxam’s contract to distribute its products in Kenya.
Meanwhile, Equity Bank has guaranteed that it will pay the money, which means that Maxam can now claim compensation now that the country’s highest court has refused to stay the order.
Heineken also resigned from his former legal practice, Anjarwalla and Khanna Advocates of Ngatia and Associates.
Heineken, in an application filed by senior counsel Fred Ngatia, claimed that if Maxam received the money, it would be impossible to recover the money.
The court stated that Maxam had no known assets to offer as security. Furthermore, the court stated that Maxam could always ask the bank for security if no court order was issued.
Heineken said its business now covers 170 countries.
“Repayment of the amount is impossible as the second defendant (Maxam) has no known assets that can be seized and it is uncertain whether these assets will be available when the court determines the appeal. A bank guarantee of Sh1.7 billion is liable to be demanded at any time,” Ngatia argued.
May 21, 2013Heineken East Africa Imports Limited (Heineken EA) wrote to Maxam appointing it as the sole distributor of its products.
Two months ago, on 28 February 2013, Heineken International BV, on behalf of Heineken EA, appointed Modern Lane Ltd (a subsidiary of Maxam) to be responsible for the Uganda from February That same year, the company announced that it would release a hybrid version called “Symbol.” This was pending the preparation of a formal distribution contract.
Heineken Brouwerijen BV wrote to Olepasu Tanzania Ltd confirming that it will be the importer in Tanzania from April 2013.
On January 27, 2016, nearly four years after the contract was signed, Heineken sent a letter to Maxam requesting that the contract be terminated on May 1, 2016. Heineken said the move would also affect Modern Lane and Olepasu.
The three companies appealed to the High Court.
High Court Judge Eric Ogola ordered Heineken not to terminate Maxam’s distribution rights, but the two companies still appointed a distributor of Maxam as the exclusive distributor.
[ad_2]
Source link
