Beer distributor wants Heineken’s application dismissed

A local company engaged in beer distribution is seeking court orders to strike out three defences filed by Heineken East Africa Import.

Maxam Limited wants the court to issue orders staying all proceedings until its application challenging the defence statements by the international company is heard.

The local company through lawyer Philip Nyachoti told Justice Grace Nzioka says that the defence statements were filed without leave as required by the Civil Procedure Act.

He said the defendant’s action has delayed the hearing of the application by Maxam Limited for eight months.

“The statement by the defendants company have been filed and served upon the applicant company contrary to the law,” Nyachoti argued.

The lawyer said that defendants were required to have filed an amended defence as ordered by court on May 9 insisting that the applicant company (Maxam Limited) are unable to put reply to the said defence.

The lawyer asked the court to make a ruling to which application should be heard.

The judge on her part said that she will make her consideration on Wednesday morning.

Heineken East Africa Import Company Limited is restrained from terminating a multi billion shillings contract with local distributor.

The proprietors of Maxam Limited, Modern Lane and Olepasu Tanzania Limited, says that the Heineken beer brand has issued a notice through Heineken International B.V for the termination of the contracts and agreement for the distribution of its products in Kenya, Uganda and Tanzania respectively.

The distributor has submitted to the court that the intended action is made in bad faith without considering the huge investment the applicants has made to ensure compliance of the agreement entered in 2013 between the parties.

Nyachoti said that the said notice was issued on January 27 by Heineken International on alleged instruction from Heineken East African Import Company limited and Heineken Brouwerjen B.V.

He however argues that the notification goes against the spirit of the agreement by parties.