It's a big win for Nairobi businessman after 14 years of wait

It's a big win for Nairobi businessman after 14 years of wait

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It’s a court case that has dragged in the corridors of justice for more than a decade – a classic proof that the wheels of justice turn slowly, but grind exceedingly fine.

It’s been roughly three days since the landmark ruling at the High Court – with the aftershocks now felt within and without the walls of garment maker Manchester Outfitters Ltd (MOL).

In their ruling -- Justices Lilian Mutende, Chacha Mwita and Mugure Thande -- sitting at the High Court -- unanimously ruled that Businessman Mohan Galot is the legitimate director of the famous uniform production and distribution company.

Billionaire Mohan Galot went to court 14 years ago seeking to regain control of his company -- Manchester Outfitters Ltd.

Mohan and his nephew Pravin Galot have been battling in court for the control of the company incorporated on November 3, 1977.

Mohan Galot had in 2007 removed his nephews Pravin, Rajesh and Ganesh as directors of the company – a move the nephews dismissed as inconsequential.

In their prayers, the nephews sought several orders, including a declaration that the purported removal of the 1st, 2nd and 3rd defendants as directors of MOL is null and void.

According to them, they had inherited 349 shares each from their fathers; Mohan’s siblings.

The court, in its findings, however, ruled their there was no evidence that their fathers had acquired the said shares at the company.

According to them, and as captured in their court papers, the directors and shareholders of MOL are: Malot Galot with 2 shares, Ganeshlal Galot (now deceased) with no shares, Pravin Galot with 349 shares and Rajesh Galot with 349 shares. Galot Limited holds 700 shares but is not a director.

The court, however, ruled that: “… the shareholders of MOL are Lanchand and Mohan… We therefore find the removal of Parvin, Rejesh and Ganeshlal as director of MOL by Mohan in 2007, was in exercise of the power conferred upon him as governing director by article 10 (of the company’s articles of association).

According to Mohan, Manchester Outfitters was established in 154 by his father, the late Lachman Pusharam Galot (Pusharam), as a sole proprietorship, to carry on the business of uniform production and distribution.

The company was later converted into a 50/50 partnership between Pusharam and Mohan. That they employed Mohan’s brothers, Lalchand Pusharam Galot (Lalchand), Ganeshlal Pusharam Galot (Ganeshlal) and Sohanlal Pusharam Galot (Sohanlal).

MOL was incorporated on 3rd November 1977 with Mohan and Lalchand as the only subscribers and shareholders.

 

Tags:

High Court Nairobi county Chacha Mwita Justices Lillian Mutende Mugure Thande Businessman Mohan Galot

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