Africa-Press – Tanzania. THE High Court’s Commercial Division has ordered a local registered company, Solohaga Company Limited, to pay the Attorney General (AG) about 370m/- for breach of contract on road opening of surveyed plots project at Msata /Masuguru village in Bagamoyo, Coastal region.
Judge Steven Magoiga ruled in favour of the AG, who stood for UTT Project Infrastructure Development PLC, the plaintiff, after allowing a suit with costs lodged against Solohaga Company Limited, the defendant, following the breach of the contract in question.
“I allow this suit in favour of the plaintiff of the following orders, namely:-payment of 369,148,919/10 to the plaintiff being the amount due and remain unpaid, hence, constituting a breach of contract (and) payment of general damages to the tune of 5m/-,” the judge declared, among others.
He ruled after hearing the evidence from both parties that the defendant company breached the facility agreement dated March 26, 2014 and the tripartite agreement between projects and infrastructure Development PLC (UTT-PID) and Solanga Company Limited.
The judge further found that the defendant company breached terms and conditions of the deed of settlement between UTT projects and infrastructure Development PLC (UTT-PID) and Solanga Company Limited dated July 25, 2017.
On whether the defendant company is indebted to the plaintiff to the tune of 369,148,919/10, Judge Magoiga noted that after the execution of Deed of Settlement, the defendant was able to repay only 254,800,000/- out of 500m/-the principal sum.
“The remaining 245,200,000/- plus interest to the tune of 213,217,500/- minus 89,268,580/89, the outstanding debt is now at 369,148,919/10,” he said.
According to the plaint, on March 26, 2014, UTT Project Infrastructure Development PLC and Solohaga Company Limited entered into a loan agreement for the purpose of financing the undertaking project of road opening of the surveyed plots at Msata /Masuguru village in Bagamoyo, Coastal region.
Under that arrangement, in April 2014 UTT-PID advanced the loan to Solohaga Company Limited, to the tune of 344,068,580/85 with conditions, among others, that the said loan was to be repaid within one month from the completion of road opening and construction.
Furthermore, it was alleged that the defendant defaulted in repayment of the principal sum plus interest, which act constituted an event of default under the agreement. As means of debt settlement, on July 25, 2017 parties signed a Deed of Settlement, as per the terms and conditions contained therein.
Among the terms of the Deed of Settlement, the defendant was to repay 500m/- for eleven (11) installments but despite good gesture, the defendant was able to remit only 254,800,000/-, out of 500m/-.
As such the defendant failed, neglected and ignored to repay the remaining outstanding loan. It was against such background, the plaintiff instituted the suit in question.
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