A commercial court has ordered Kenya Knitting & Weaving Ltd and Ideal Auctioneers to pay Gopitex Knitwear Mills Ltd Sh17 million in damages together with costs and interest.

Milimani Commercial and Tax Division judge Mary Kasango further issued permanent injunction orders restraining the first two firms from selling or auctioning Gopitex’s—the plaintiff—machinery and tools of trade.

Gopitex, represented by lawyer John Ogada, had sued Kenya Knitting claiming they had unlawfully attached its machinery and tools of trade in respect of a debt, which they did not owe the defendants.

Gopitex director Bhagubhai Bhailal also claimed damages for loss of business and interests. 

In his submissions, Ogada argued that the attachment of the property  to auctioneers was carried out illegally as no rent was owed by his client. 

Ogada said Gopitex had sold to Kenya Knitting Industrial Properties in Nairobi but the latter failed to complete the purchase price within the time agreed. Instead the firm started to collect rent from Gopitex even before completing the purchase price.

Regarding the evidence of Kamal Joshi, the director of Kenya Knitting, judge Kasango said: “I had the opportunity to observe Mr. Joshi testify. I did not find Mr. Joshi to be a truthful or credible witness.”