The appellate court has handed the Rift Valley Railways (RVR) a reprieve after it suspended a demand for the company to deposit Sh57 million in court, pending the determination of a suit by an interior designer company, which was contracted to renovate some coaches.
A bench of three judges heard the pleas of the RVR and allowed the application, saying that there was real danger of the company’s officers being committed to jail, if they fail to deposit the money as directed.
In the matter, Sewa Furniture and Interior Designers Ltd sued RVR said it had been contracted to renovate 20 coaches for Sh194 million. This was after RVR entered a deal with Kenya Railways Corporation to run the meter-gauge railway for 25 years. The deal was later terminated.
Court documents showed that RVR paid the firm Sh20 million. Sewa Furniture later moved to court seeking the balance.
However, Sewa Managing Director Andrew Wanyoike sought the money deposited, saying RVR did not have known assets, which could be liquidated, in case its matter succeeded.