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DREAM CAMP KENYA LIMITED V. MOHAMMED ELTAFF, SAGA SAFARIS LIMITED, SAGA TRAVEL AND SAFARIS A. B. & TOUR AFRICA SAFARIS LIMITED

(2013) JELR 102635 (CA)

Court of Appeal  •  Civil Application 170 of 2012  •  1 Mar 2013  •  Kenya

Coram
John walter Onyango Otieno, William Ouko, Fatuma sichale

Judgement

RULING OF THE COURT

This dispute has had a chequered and controversial history. Its genesis was a disagreement on the sale of shares, remainder of the lease, goodwill and assets. An action, H.C.C.C. No. 450 of 1999 was instituted in which Mulwa, J. in his judgment held, in relevant part as follows;

“It is quite clear that the relationship between the parties has deteriorated to the extent that it may not be possible for the plaintiff to work with the defendant again. The situation is made worse by the fact that the plaintiffs are running competing business to that of the defendant. I noted that the Agreement for Sale contains an arbitration clause. This dispute would have been best handled through arbitration rather than litigation. For some reasons litigation was preferred to arbitration. The best way out of existing situation which was made worse by this litigation is that the 1st plaintiff sells his shareholding of 10% to the other existing shareholders of the company at a fair marke…

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