Heineken East Africa Imports and Company Limited has petitioned the Supreme Court for a stay of execution of the judgment requiring them to pay Maxam Limited ksh 1.7 billion
“Pending the hearing and determination of the petition of appeal, this court be pleased to issue order of stay against the execution and or enforcement of the judgment delivered on 24th May this year….” reads court papers.
The corporation wants the order set aside.
Under a certificate of urgency, Heineken claims that it did not obtain a bank guarantee for 1.7 billion shillings and that once the payment is made, the cash will be out of the court's reach.
In an affidavit signed by one of its directors, Kevin Santry, the beer maker company claims that the court of appeals decision might disrupt the beer sector by fundamentally changing the commercial ties between beer manufacturers and distributors.
The Court of Appeals upheld a decision in May this year awarding local distributor Maxam Limited Sh1.7 billion as special damages for loss of business after Dutch beer maker Heineken terminated its distribution agreement.
In May of this year, a ruling was maintained that awarded local distributor Maxam Limited Sh1.7 billion in special damages for loss of revenue when Dutch beer producer Heineken ended its distribution arrangement.
Maxam's counsel, Phillip Nyachoti, contended before the High Court that the termination was procedural and unlawful. He stated that Heineken attempted to insulate itself from a lawsuit by claiming the termination was without prejudice.
