The High Court on Monday dismissed the award granted to businessman Kamlesh Pattni as compensation of one of his companies by Kenya Airports Authority (KAA) after being evicted from JKIA.
The ruling made by the Commercial Division, Judge Francis Tuiyott annulled the award that required KAA to pay World Duty Free (WDF) company Ksh 4.9 billion together with a 12 per cent interest which brought the claim by Pattni to Ksh 9.4 billion.
KAA, however, had moved to court to protest the decision made by Justice (Rtd) Edward Torgbor in December 2012 after being denied a chance to contest the claims by Pattni.
Through their lawyer Eric Mutua, the airports authority claimed that the decision to uphold the businessman’s claim was unlawful and against public policy.
“I concur with Mr Mutua for KAA that it is contrary to public policy given that Justice Torgbor ignored, disregarded and or misinterpreted the legal effect of the 2006 decision by the International Centre for Settlement of Investment Disputes (ICSID) between World Duty Free Company Limited and the government of Kenya,” stated Tuiyott.
Pattni had claimed that he was denied access to facilities both at the JKIA and the Moi International Airport in Mombasa.
He further stated that the company was later evicted and was seeking compensation for goods damaged and loss of his business.
Tuiyott revealed that the agreement made between WDF and the government was based on an illegal contract of April 27, 1989.
He further explained that the details of the ICSID were binding thus Pattni and WDF had no right to operate duty-free shops or advertise both at the JKIA and the Moi International Airport.
Following the ruling, the airports authority is not required to compensate the amount demanded by the controversial businessman.
