Justice of Appeal, Frank Kapanda, on Thursday allowed Attorney General (AG) Chikosa Silungwe to proceed with arguments against a K12 billion payout to Mulli Brothers Limited (MBL).
In light of the ruling, the AG is expected to amend the notice of appeal and has been allowed to file supplementary arguments in challenging the K12 billion damages claim from Sunrise Pharmaceuticals and Chombe Foods, subsidiaries of MBL group.
The ruling also means that the State will now fight against the payout of K9 billion balance after it had already paid K3 billion. If successful, Mulli Brothers Group will be compelled to pay back the K3 billion already advanced to the company.
The claim was for damages of property and loss of business suffered by the two firms during the July 20, 2011 anti-government demonstrations targeted at former president Bingu wa Mutharika and the previous regime had started honouring the settlement agreement.
The AG is arguing that government was not liable for the damages and loss of business suffered during the demonstrations but organisers under the Police Act.
During the July 20, 2011 demonstrations, 20 people were killed and property destroyed.
Civil society organisations led the protests against former and late president Bingu wa Mutharika over his leadership style which the organisers did not find favourable which led to fuel crisis among others.