Africa-Press – Tanzania. THE High Court’s Commercial Division has ordered Nipo Group Ltd, a local Engineering and Electrical power installation company, to pay over 940m/- to Sao Hill Industries Ltd for breach of contract on supply of treated wooden poles for rural electrification projects.
Judge Deo Nangela ruled in favour of Sao Hill Industries, the plaintiff, which is a subsidiary of Green Resources AS (GRAS), Africa’s leading Forestation Company, after granting a default judgment against Nipo Company for failure to file their defence in respect of the claims.
“This Court declares the Defendant has breached the terms of purchase agreement executed between the two parties.
The Defendant is ordered to immediately pay the Plaintiff 940,554,800/-, being the outstanding amount due and owing to the Plaintiff for the purchase of Poles supplied,” he declared.
The judge pointed out that there was sufficient proof that the defendant was served with documents of the case, but refused to acknowledge service and failed to appear in Court, even after the summons had been served on him by way of a substituted service mode.
Having looked at the annexure to the affidavit and the original copies availed to him; Dr Nangela said that he found no dispute that the Plaintiff did supply the wooden treated poles to the defendant.
According to the judge, there was also no dispute that the plaintiff demanded from Mtwarathe defendant payment of the said amount and the defendant failed, refused or neglected to honour the demands.
“Since the defendant has not filed any defence, the claims remain to be what they are. It is my findings that the plaintiff has proved its case to the required standards and, hence, is entitled to a default judgment, as well as some of the prayers sought,” he said. The judge concluded that the defendant was in breach of the agreement for supply of treated wooden poles which the defendant executed sometime in November 2019. Sometime in November 2019, the plaintiff and the defendant executed an agreement for supply of treated wooden poles. The plaintiff was to supply such poles to the defendant, a registered contractor under the Rural Energy Agency (REA) for a rural electrification project managed under the Tanzania Electric Supply Company (TANESCO). It was averred that the plaintiff performed her contractual obligations on various dates between November 2019 and March 2020 by supplying the required poles and effecting the requisite payments to Mafinga Town Council amounted to 56,730,000/-. When all was done, the plaintiff proceeded to issue the defendant with invoices for the poles supplied a sum of 1,395,754,800/- on January 13 and April 28, 2020, the defendant made part-payment of 455, 200,000/-. It was stated that, as of August 2020, the balance of 940,554,800/- remained outstanding. On March 25, 2020, the plaintiff and defendant executed an agreement whereupon the latter committed to pay within 60 days, a sum of 472m/- in full with 17 per cent interest per annum, being an outstanding amount for treated wooden poles supplied to Mwanza Region on the defendant’s order. However, the defendant failed to honour his obligations under the agreement as well. Several email correspondences were initiated to follow-up the claims, but with no meaningful responses. Moreover, the plaintiff served on the defendant several demand letters, as well without success. Seeing that the defendant has failed, refused or neglected to pay the outstanding balance, the plaintiff instituted the suit, praying for judgment and decree.
