WHOLESALER DIRECTED TO PAY SH48 MILLION TO VEGETABLE OIL SUPPLIER.

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BY SAM ALFAN.

A Judge has directed Dire Dawa wholesalers to pay Sh47.9 million it owes to its supplier, Golden Africa Kenya limited.

Justice David Majanja ruled in favour of Golden Africa Kenya limited after the company sued the distributor over a debt of USD 444,285.44 (Sh47,982,827.52) for goods supplied to the company two years ago.

“I therefore enter judgment for the plaintiff against the defendant for USD 444,285.44 together with interest at court rates from the date of filing suit, that is, 7th November 2019 until payment in full. The plaintiff shall have the costs of the suit” ruled Majanja.

Golden Africa Kenya limited told the court that on various dates between June 2018 and September 2018, it supplied to the (Dire Dawa wholesalers) defendant at its request, consignments of vegetable oil on credit.

It added that despite receiving the consignments, the distributor failed to pay the amount since August 24, 2019.

The parties subsequently entered into a Debt Settlement Agreement dated September 23, 2019 wherein the distributor to pay the amount within 60 days of the agreement.   

“Despite demand and notice of intention to sue, the defendant failed to honour the agreement causing the plaintiff to file this suit” added Golden Africa. The wholesalers did not file its defence.

Before the date fixed for formal proof, Adul Rashid Sharifow, a director of the defendant, filed a Notice of Motion dated July 21, 2020 seeking to be joined as an interested party in his own right and only for purposes of filing and prosecuting the application to set aside judgment.

However, the application came up for hearing and was dismissed on the ground that it was an abuse of the court process as the interested party had no right to set aside the default judgment against a known defendant as he has no cause of action or defence against the plaintiff’s claim.

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