Firm wins Sh46.5m legal battle against Mombasa County Government
The High Court has ordered the county government of Mombasa to pay Sh46.5 million to a company for the supply of five 20-tonne tipper lorries delivered in June 2015.
Justice Olga Sewe ruled that in the absence of proof of payment, she was satisfied that the money remains due and payable from the county government to Kenya Trucks and Tractors Ltd.
The judge added that the firm had proved on a balance of probabilities that the devolved unit owes it Sh46.5 million.
Justice Sewe said she was convinced as to the truth of the evidence of the company’s witness that it was agreeable to the county government’s proposal to have the money paid in two tranches, but which was not honoured.
“In the result, judgment is hereby entered for the plaintiff in the sum of Sh46.5 million together with interest thereon at court rates from the date hereof until payment in full together with costs of the suit,” Justice Sewe ruled.
Kenya Trucks and Tractors Ltd told the court that it responded to an invitation to a tender advertised in local newspapers in 2014 for the supply and delivery of five units of 20-tonne payload tippers.
The company said it participated in the tender and was a successful bidder before it was issued with a Local Purchase Order (LPO) by the county government to supply the tippers.
According to the company, it proceeded to import the tippers on behalf of the defendant and delivered them on June 22, 2015.
Verbal agreement
The company told the court that as the motor vehicles were delivered towards the end of the Financial Year 2014-2015, it was verbally agreed between the parties that payment would be made in two tranches, with Sh27.9 million to be paid in July 2015, but that was never to be.
It told the court that the defendant failed, refused and neglected to pay the money plus interest and additional costs incurred in connection with the supply of the tippers despite various requests, follow-ups and undertakings.
The company said it also wrote to the National Treasury requesting information on its pending bill.
Kenya Trucks and Tractors Ltd said while the county government responded to say that its matter would be looked into, the National Treasury wrote to it saying the bill was not listed among the county government’s debtors as at June 30, 2018.
On its part, the county government sought the dismissal of the case, denying every claim by the company, including allegations that it issued the LPO.
It further denied having received any tippers from the plaintiff.
The county told the court that it settled all its pending bills and was not in any way indebted to Kenya Trucks and Tractors.
The devolved unit submitted that since the company acknowledged that it prepared two payment vouchers, it was illogical and disingenuous for the firm to then turn around and allege that it was never paid at all.
In another separate case between the two parties, the judge dismissed a case by the firm seeking to be paid Sh53.5 million by the county for the alleged hire of its bulldozer and wheel loader for Sh15,000 per hour. BY DAILY NATION
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