Total sues Aya over defaulting on Shs76m petroleum supplies

Fuel distributor, Total Uganda Limited has sued Aya Investments seeking to recover more than Shs70m in petroleum products supplies.
In a case filed before the Commercial Division of the High Court, Total contends that Aya has refused to pay for supplied fuel and other petroleum products despite several reminders.
Total, acting through Sekabanja & Co Advocates, claims that on December 9, 2015 it signed a Product Supply and Loan of Equipment Agreement, which contracted the company to supply Aya with petroleum products among them diesel and liquid petroleum gas (LPG).
Under the agreement, Aya undertook to pay for the products supplied within 30 days from the date of invoicing.
However, Total claims that Aya has refused or neglected to pay despite several reminders, which the fuel distributor claims have been ignored.
“At various occasions in 2017 and 2018, Total supplied the defendant [Aya] products worth Shs351, 665,120 in pursuance of the product supply and loan of equipment agreement,” court documents read in part, noting that the defendant made payment amounting to Shs274.9m and left an unpaid balance of Shs76.7m, which Aya has to date refused to pay.
Total claims it has made several demands for payment of the Shs70m balance but to no avail. Aya, according to court documents, has also been served with a notice of intention to sue but was ignored. Therefore, Total is seeking court intervention to force Aya to pay the money, interest at a rate of 24 per cent from date of default until payment in full.
In an affidavit sworn by Mr Micheal Lule, who was the LPG coordinator at the time the defaulter, Total confirmed supply of the said products and no objection has been filed before court.
In Mr Lule claims that he is conversant with the facts pertaining to the suit and endorses Total’s claim.