High Court has suspended the decision to cancel the contract given to Sarrai Group, a Uganda based firm, to run the troubled Mumias Sugar Company for 20 years.
Justice Dorah Chepkwony ruled in favour of Sarrai that had moved back to court claiming that it was condemned before being heard over the revocation of the 20-year lease.
Sarrai argued that Justice Alfred Mabeya, who cancelled the lease and ordered them out of Mumias Sugar premises immediately, granted an order which was never sought.
In that ruling made on April 14, Justice Mabeya also revoked the appointment of KCB receiver-manager PVR Rao as the administrator of Mumias Sugar.
Sarrai Group lease was revoked after lawyer Jackline Kimeto, who is demanding Sh76 million from Mumias, argued that the receiver manager (Mr Rao) acted against the best interest of the company.
Gichaba also argued that Sarrai wants to file an appeal which will be rendered void useless if the order is not suspended.
But Mr Rakesh Kumar, a manager at Sarrai Group said in an affidavit that the applicant risks suffering a substantial loss of investment if the court fails to intervene.