Africa-Press – Tanzania. THE High Court in Dar es Salaam has ordered one of the leading construction firms, Boya Building Contractors Co. Ltd, to pay over 400m/- compensation to Ocean Link International Limited for breach of contract for supply of iron steel bars and cement.
Judge Augustine Rwizile ruled in favour of Ocean Link International Limited, the plaintiff, after granting an ex-parte judgment following failure by Boya Building Contractors Company, the defendant, to defend the claims filed against them.
Having received the evidence from the witness of the one plaintiff, the judge satisfied that indeed the defendant defaulted the terms of payment as per the agreement.
“The volume and an amount worth are well stated (in the proforma invoice). In the absence of any evidence to the contrary, I take it that the plaintiff had supplied 346.3 tons of iron steel bars to the defendant at the considered amount of 541.66 US dollars per ton,” he said.
According to him, the plaintiff testified and submitted that the defendant paid 20,000US dollars, meaning that the remaining sum was 167, 578, 17 US dollars. It was his conclusion that the terms were breached and the amount claimed is due to the plaintiff.
The judge pointed out also that the plaintiff, having supplied goods, was entitled to payment and since payment was not made until the time of filing the suit, the same should be compensated adequately. In fine therefore, judgment is entered for the plaintiff.
The Plaintiff be paid a sum of 167,578.17 US dollars being a specific amount owed (and) be paid general damages at the tune of 50m/-,” the judge declared.
He also ordered for payments of interest at court rate on the decretal amount from the date of judgment to the date of full payment and costs of the suit. Parties to the case are companies running their business in Tanzania.
They happened to be in business relations. Where the plaintiff supplied iron steel bars and cement on credit, the defendant was to pay the plaintiff upon use and utilisation of goods supplied. It seems, they had no written agreement stating the terms through which business could be conducted but it is shown that their relationship did not last for more than three years.
The plaintiff had agreed to supply iron steel bars in tons and each ton was to cost 541.66 US dollars. When the plaintiff supplied 346.3 tons, valued at 187,578.17 US dollars, the defendant paid the sum of 20,000US dollars.
Despite several demands, the balance of 167,578.17 USD was not made as agreed. In the interpretation of the plaintiff, this amounts to breach of their terms of business.
She therefore commenced the suit before the court, praying for judgment and decree against the defendant.
The defendant upon due service filed a Written Statement of Defence on July 16, 2019 disputing the claims and asked for strict proof of the same. On July 19, 2019 and days that followed, a company secretary for the defendant appearing to defend the case. It is unfortunate that his last appearance for the defendant was on October 1, 2019.
The patient court adjourned the matter for the whole year of 2020. It was ultimately decided that before going exparte, at least a notice be published in the daily circulation newspaper.
This was done on March 11, 2020 in one daily newspaper. As if that was not enough, one year later, the same publication was done in the sane newspaper, dated March 13, 2021.
Despite such warning signs, the defendant did not attempt to appear again and defend his case. When the court was no longer at ease, it ordered an exparte proof under order IX Rule 7 of the civil procedure Code (CPC).
