High Court Temporarily Suspends Sh15m Refund Order in Bic Counterfeit Case

The High Court has suspended the implementation of a judgement that ordered Haco Industries to refund Doshi Iromongers Sh15 million for breach of an agreement relating to counterfeiting of pens.

Haco Industries has decided to appeal the judgement at the Court of Appeal and Justice Olga Sewe made a judgement stating that there shall be a suspension of the execution of the judgement pending hearing and determination of an application by Haco. She further ordered Doshi to file its response to the application within the next 14 days.

“Pursuant to the judgement, Doshi Ironmongers Ltd is most likely to commence executing against the applicants, an action that would render the intended appeal nugatory,” stated Haco in an argument.

Steve Maina, Haco Industries Finance Director said that the company has factual and legal issues disclosed in details in the draft memorandum of appeal. He further said that the judge failed to consider the contents of settlement agreement dated February 20, 2002.

Doshi had argued in the court that back in February 20, 2002, it entered into a settlement agreement with Haco who agreed to discharge it from all past, present, and future liability regarding the 1996 products (pens).

The parties agreed to refer disputes arising to arbitration. However, Haco breached the agreement when it filed criminal charges against Doshi, which saw the latter suffer loss and damage.

According to Justice Otieno, Haco Industries Ltd breached the agreement with the counter claimant, Doshi Ironmongers Ltd. He further argued Haco should no longer keep the money it received for the breached agreement and demanded the company to refund the money.