Home Courts Construction Company Ordered to Pay 237.6 Million Shillings for Contract Breach

Construction Company Ordered to Pay 237.6 Million Shillings for Contract Breach

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construction company ordered to pay 237 6 million shillings for contract breach
construction company ordered to pay 237 6 million shillings for contract breach
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In a recent ruling, the High Court in Mukono has instructed Royal Transit Limited, a construction firm, to pay 237.6 million shillings (approximately $63,600) to Ariam Property Limited due to a breach of contract. Judge David Matovu also ordered the proprietor of Royal Transit Limited to pay an additional 50 million shillings in general damages.

Ariam Property Limited had taken Royal Transit Limited to court for failing to fulfill its debt payment obligation. Judge Matovu stated, “Having found the defendant in breach, the plaintiff is entitled to $63,600, which represents the unpaid balance on the purchase price of the excavator.”

In his judgment, Judge Matovu noted that the proprietor of Royal Transit Limited did not dispute the evidence presented by the plaintiff’s witnesses. He confirmed that the defendant had defaulted and had not paid the full purchase price as originally agreed.

According to court documents, on March 16, 2019, Ariam Property Limited sold an excavator to Royal Transit Limited for an agreed price of $125,000 (466.9 million shillings). The excavator was delivered to the defendant on the same day. However, Royal Transit Limited only paid $27,000 (100 million shillings) in cash and agreed to pay the remaining $98,000 (366 million shillings) in seven installments of $14,000 (52.3 million shillings) each on or before April 25, 2019. Unfortunately, the company failed to adhere to the payment schedule, leading to the legal action taken by Ariam Property Limited.