Kwale sugar firm seeks to block liquidation suit

Kwale International Sugar Company is in court seeking to block civil works company Epco Builders from winding it up over a Sh652 million claim that the miller has disputed.

In a petition, Kwale International says the contractor has filed insolvency proceedings seeking orders to liquidate the sugar company.

The miller has asked the court to direct the chairman of the Chartered Institute of Arbitrators to appoint an arbitrator within 30 days.

Justice David Majanja directed the construction company to file its reply within 14 days and said the case will be mentioned on February 17.

The two companies entered into an agreement on April 30, 2012. They differed after the contractor allegedly made unsubstantiated claim for additional payment, losses and expenses.

The claims were assessed by the project manager Adventist Inhouse Africa, which allegedly found that some of the claims were inadmissible and others required further analysis.

In the agreement, the parties resolved that any dispute should be handled by an arbiter.

Court documents showed that the unresolved dispute led to the delayed completion of works, for which the sugar company holds a claim against the contractor.

The miller wrote to the Chartered Institute of Arbitrators in October 2019 requesting at least three names of arbitrators, well versed in handling disputes relating to building and contractual works.