The High Court in Mukono has issued a ruling instructing Royal Transit Limited, a construction company, to pay $63,600 (approximately shillings 237.6 million) to Ariam Property Limited due to a breach of their contract.
On Wednesday, Judge David Matovu ordered the owner of Royal Transit Limited to provide an additional sum of shillings 50 million as general damages.
Ariam Property Limited had taken legal action against Royal Transit Limited for failing to fulfill their obligation to repay a debt.
Judge Matovu stated, “Having determined that the defendant breached the contract, the plaintiff is entitled to $63,600, which represents the unpaid balance on the excavator’s purchase price.”
In his judgment, Judge Matovu noted that the owner of Royal Transit Limited had not presented evidence to refute the claims made by the plaintiff’s witnesses.
“Indeed, the defendant failed to fulfill its commitment and did not pay the full purchase price as initially agreed,” Matovu affirmed.
According to court records, on March 16, 2019, Ariam Property Limited sold an excavator to Royal Transit Limited for an agreed-upon price of $125,000 (shillings 466.9 million). The excavator was delivered to the defendant on the same day.
Royal Transit Limited initially paid $27,000 (shillings 100 million) in cash and agreed to pay the remaining $98,000 (shillings 366 million) in seven installments of $14,000 (shillings 52.3 million) each, with the final payment due on or before April 25, 2019. However, the company failed to fulfill this payment arrangement, leading Ariam Property Limited to initiate legal proceedings.
