Business

Justice: Court declines to hold off fine against Heineken

Wednesday, August 14th, 2019 00:00 | By
Justice. Photo/Courtesy

The High Court yesterday declined to suspend the execution of a judgment against beer makers Heineken East Africa (EA) Company Ltd and Heineken International BV which required the firms to pay Maxam Ltd Sh1.8 billion in a distribution row.

Justice Wilfrida Okwani declined to grant the beer manufacturers any orders and directed that they serve their application on the respondents.

The two wanted the court to stop the execution of the said judgment as they appeal it arguing the company has no assets.

“We have already filed a notice of appeal. We pray that a stay be granted and are ready to provide security,” argued their lawyers in court yesterday.

However, lawyer Philip Nyachoti, representing the local beer distributor Maxam, accused Heineken of refusing to obey the orders issued by Justice James Makau last month.

“They deliberately decided not to obey the orders issued on July 29. The defendants should comply before the stay is issued,” he argued.

Justice Onkwani directed the application be served on the respondents for hearing of the matter on September 17. Justice Makau last month awarded Maxam Sh1.8 billion as special damages for loss of business after Heineken EA terminated their distribution agreement.

According to the judge, the termination of the distribution agreement dated May 21, 2013 by Heineken EA and Heineken International BV was unlawful, irregular, unprocedural and therefore null and void.

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