The High Court in Mukono has issued a verdict demanding that Royal Transit Limited, a construction company, pay $63,600 (approximately 237.6 million Ugandan shillings) to Ariam Property Limited for breaching a contract. Additionally, the court ordered the proprietor of Royal Transit Limited to provide an extra 50 million shillings in general damages.
The legal action was initiated by the management of Ariam Property Limited, who accused Royal Transit Limited of failing to meet its financial obligations as stipulated in their agreement.
In delivering the judgment, Judge David Matovu stated that the plaintiff was entitled to the outstanding balance of $63,600, which represented the unpaid portion of the excavator’s purchase price. Matovu emphasized that the defendant, Royal Transit Limited, had not effectively countered the evidence presented by the plaintiff’s witnesses, indicating the breach of contract.
According to court records, on March 16, 2019, Ariam Property Limited sold an excavator to Royal Transit Limited for a previously agreed-upon sum of $125,000 (approximately 466.9 million Ugandan shillings). The excavator was subsequently delivered to Royal Transit Limited on the same date. The company made an initial payment of $27,000 (about 100 million shillings) in cash and agreed to settle the remaining $98,000 (about 366 million shillings) in seven installments of $14,000 (about 52.3 million shillings) each, with the final installment due by April 25, 2019. However, Royal Transit Limited failed to fulfill this payment schedule, leading to the legal action taken by Ariam Property Limited.