The Commercial Division of the High Court has given National Drug Authority (NDA) 15 days within which it has to defend itself against breach of contract.
NDA, according to documents before court, is accused of refusing to pay for chemicals worth more than Shs272.8m.
In a case filed through Omongole & Co Advocates, Goodwill Lab Supplies accuses NDA of refusing to honour a contract it entered for the supply of chemicals and reagents for a period of three years.
Goodwill Lab Supplies contends that on April 26, 2018, after emerging the best evaluated bidder, it entered into a framework contract with NDA that would be renewable after every one year.
Subsequently, through various requests, Goodwill Lab Supplies supplied variously after which it issued invoices some of which were paid while others remain unpaid. Details indicate that Goodwill Lab Supplies was only paid for three local purchase orders but an outstanding of Shs272.8 remains unpaid.
Therefore, the company is praying that court forces NDA to pay the outstanding sum with an interest at commercial rate of 25 per cent per annum.
According to the summons signed by the Commercial Court registrar, NDA must within 15 days file its defence, failure of which court will pass a judgement for the rights claimed.
In the case, Goodwill Lab Supplies claims several attempts to recover the outstanding amount have been frustrated with reminders for the payment being ignored.
It also accuses NDA of breach of contract given that it stopped making requests for supplies months into the contract.
At the trial Goodwill Lab Supplies asserts that it will table evidence that it performed its part of the contract but as a result of NDA’s conduct, it has suffered and continues to suffer inconvenience, mental anguish, loss and damages for which it will claim damages.
NDA, court documents also indicate that after it had been served with a notice of intention to sue, convened a meeting in which it denied its part of the obligation under contract.