Suits pile up in the fight for Manchester Outfitters
Manchester Outfitters Ltd Executive Director Rajesh Galot, flanked by Kenya Association of Manufacturers CEO Phyllis Wakiaga (centre) and the chairperson of the Kenya Covid-19 Emergency Response Fund Board Jane Karuku, inspect personal protection equipment locally manufactured by the Nairobi-based firm.
What you need to know:
- The company is one of the first and pioneer garment makers in Kenya.
- One of the disputes has been pending in court since 2009 due to a change of lawyers.
A vicious fight for control of the multi-billion shilling clothes maker, Manchester Outfitters Limited, is far from over as two family members jostle for power.
Mr Pravin Galot and his uncle Mohan Galot, a renowned billionaire businessman, are embroiled in a dispute over who is the legitimate managing director of the garment manufacturing company that was started 78 years ago. The company is one of the first and pioneer garment makers in Kenya.
In the dispute that is ongoing at the commercial court in Milimani Nairobi, Mohan accuses his nephew Pravin of fraud by registering a parallel company with almost a similar name, Manchester Outfitters (East Africa) Ltd.
He claims that he invited his nephews (Pravin and Rajesh Galot) to join the family enterprises as directors, but kicked them out when they allegedly registered parallel companies in a bid to take over the business from him.
Mohan also claims that some of the parties in the dispute, in collusion with persons then employed by the office of the Attorney General conspired to falsify the record of Manchester Outfitters Limited and purported to appoint strangers as directors.
The dispute is so complex that it was assigned three judges - Justices John Mativo, Grace Ngenye and Lilian Mutende – who have since started taking evidence of the two warring sides.
The three-judge bench is tasked with determining who are the legitimate directors and shareholders of Manchester Outfitters Limited and its subsidiaries.
Court records indicate that there are at least 23 different cases, both civil and criminal, pending before the various levels of court, all related to the company and its directorship.
Family business empire
One of the disputes has been pending in court since 2009 due to a change of lawyers and multiple applications by the parties leading to a delayed determination.
The dispute has moved around various law firms in Nairobi City such as Havi & Company Advocate, which is related to former Law Society of Kenya president Nelson Havi, Rachier & Amollo Advocates (related to Rarieda MP Otiende Amollo), and Majanja Luseno & Company Advocates (related to lawyer-turned-judge David Majanja). Other law firms, which have handled the matter include Sagana, Biriq & Company Advocates, and H. Kago & Company Advocates.
At stake is the control and management of the company, which three years ago reportedly secured a government job to stitch police officers’ uniform for Sh2 billion.
In his evidence, Pravin has since told the court that he has never stepped down as the MD of the company as claimed by his uncle Mohan nor has he ever been removed from the position. Further that he has never attempted to wrestle Mohan the control of the vast family business empire.
Pravin says he owns the company and has the majority shares of 349, his brother Rajesh Galot with the same 349 shares while the company itself owns 700 shares. He told the court that Mohan, who is his father's younger brother owns one share in the disputed property.
"The issue before this court is about shareholding in the company. I am still the MD having been appointed on October 1, 1991, by the board of directors and the appointment letter was signed by Mr Mohan," said Mr Pravin.
He insisted that he has never been stripped of the position of managing director by the board of directors as required.
String of lawsuits
Pravin also claimed that he was unable to complete his university degree in the United States of America (USA) after Mohan failed to pay his school fees.
"I left USA to Kenya in September 1991 as l had issues with school fees at the university and the arrears made me unable to complete my studies," Pravin said. He tabled several letters between him and Mohan pleading for school fees. "I contacted my father and he contacted Mohan to process the fee arrears but he declined prompting me to come back into the country where l was immediately appointed as the managing director of Manchester Outfitter Limited which l have held for the last 27 years," said Pravin.
Pravin denied the claims that Mohan is the one who appointed him as the MD of the company insisting that it was the board.
"It is not true that Mohan appointed me as the MD. The board of directors appointed me as shown in a letter of the year 1991," he stated.
The witness said other parties to the dispute falls under one family. They are named as Rajesh Galot, Ganesh Galot, and Kevin Galot. Pravin also told the court that all the four families live together in Kiambu under Galot estate.
"We all live together in Kiambu Galot estate. Each of the four families have their own houses even though the estate has one entry and exit," he said.
They are also involved in a string of lawsuits involving other companies linked to the family such as Galot Industries, King Woolen Mills, Mohan Meakin, London Distillers Kenya Ltd, and MG Park.
The firms deal in real estate, shares, alcoholic and non-alcoholic beverage distillery, bottling and sale, as well as fabric and cloth making.
