Chinese firm sued over Shs493m

Friday August 16 2019

The company is accused of failure to pay for

The company is accused of failure to pay for metal works on its construction site on Namirembe Road in Kampala 

By BETTY NDAGIRE

The Commercial Division of the High Court has ordered a Chinese construction company - Guangdong Hao He Engineering and Construction to file a defence in a case in which it is accused of defaulting on about Shs493m for provision of metal works.
The company is accused of failure to pay for metal works on its construction site on Namirembe Road in Kampala.
In summons issued by court, Guangdong Hao He Engineering and Construction has 15 days within which it must file a defence failure of which court will enter judgment with its defence.
According to documents before court, V. Kanga Mental Works claims installed mild steel doors and handrail works, among others but Guangdong Hao He Engineering and Construction had refused or ignored to pay for the service.
In the case filed through Enoth Mugabi Advocates and Solicitors, V Kanga Mental Works claims that sometime in 2017, Guangdong Hao He Engineering and Construction, which had been contracted to construct retail blocks at the New Taxi Park on Mackay Road and Namirembe Road, sub-contracted V Kanga Mental Works to supply mental works valued at Shs1.4 billion.
However, upon completion of the works, Guangdong Hao He Engineering and Construction only made a part payment of the contractual sum, leaving a balance of Shs493m.
V Kanga Mental Works, court documents indicate, executed all works to agreed standards but the balance of the payment has not been executed despite several reminders and demand notices regarding the same.
The refusal to pay, V Kanga Mental Works claims, has financially constrained the operations of the company and a notice of intention to sue was ignored.
Therefore, V Kanga Mental Works is seeking a court declaration and order for the payment of the balance due, payment of damages for breach of contract, interest at commercial rate and costs to the suit.

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