By Isaiah Lucheli

Businessman Kamlesh Pattni’s World Duty Free (WDF) Ltd has been engaged in a legal battle with the Kenya Airports Authority (KAA) over the airport’s duty free shops for a long time.

Both WDF and Diplomatic Duty Free Limited (DDF) were operating the shops at the airports until they were ejected by KAA despite a court order.

An order issued by High Court judge Jonathan Havelock had barred the airports authority from repossessing or attempting to repossess the shops.

The order also prohibited KAA from granting leases to any third parties in any manner and allowed the company to deposit the rent payable under the leases in court which the two organisations entered into in March and September 2007.

The order issued on July 29 also gave temporary conservatory orders blocking KAA from granting leases to any third parties.

The companies had also sought orders to compel KAA to renew the leases dated March 5 and September 14, 2007 and the court had directed that the companies submit their rents in court pending the hearing and determination of the suit.

Expired contract

However, KAA used over 350 youths to evict the duty free shops earlier this month.

Their move culminated in a parliamentary committee convening a sitting to inquire into the demolition.

The MPs questioned why KAA ignored a court order and demolished the shops. They also questioned how the youths had been cleared to enter the airport and who authorised the action.

In their response, government officials told the committee that there was no court order in existence and the demolition had been conducted after the expiry of the contract.

When the matter came up in court last week, parties from KAA and Diplomatic Duty Free entered consent to come up with a settlement. High Court judge Alfred Mabea, with the consent of the parties in the suit, extended the order issued by Justice Jonathan Havelock on July 29, which barred KAA from repossessing the duty free shops.

The court heard that the airports authority and Diplomatic Duty Free had entered into discussions and would come up with an agreement over the shops by Friday.

The two parties have also taken an undertaking in court that the duty free shops would not be alienated to third parties.

Lawyer Ahmednasir Abdulahi, representing the airports authority, was directed to give a professional undertaking in writing that the shops will not be given to other individuals.

Diplomatic Duty Free lawyers Bernard Kalove and Peter Simani had told the court that the KAA and their client were working on a settlement, which was to be finalised by Friday.

“The parties are working on a settlement and we need until Friday to see what we can come up with. We are seeking more time in the meantime,” said Simani.

Ahmednasir agreed that the KAA and Diplomatic Duty Free were negotiating and explained that the parties would resolve the matter by Friday.

The lawyer added that KAA had no objection to the extension of the order issued by Havelock and undertook that the shops would not be leased to a third party.

The airports authority had sought to renew its contract with Diplomatic Duty Free for one year at an alternative site but the company declined stating that the move was a breach of an earlier agreement.

The matter will be heard on August 26.