RVR loses bid to set aside Sh60m order by SA court

But RVR filed an application in court seeking orders compelling Qad Software to deposit security in court so that it can recover the cost of the suit.

“This court finds that this is not one of those cases that it should exercise its discretion to grant an order for security for costs in favour of the defendant,” ruled Justice Jacqueline Kamau on August 30.

The judge observed that RVR failed to prove it would be difficult to recover the cost of the suit from Qad Software if the Kenyan firm wins.

RVR has claimed that Qad Software has no known assets and business in the country and it can evade paying the company any cost of the suit awarded against them.

Defaulted

The papers filed in court show that the dispute between the parties dates back to July 2008 when RVR allegedly failed to settle a debt owed to Qad for supply of software and maintenance services. Qad claims it entered an agreement to get the cash over a period of six months.

“The defendant made the first payment of $122,163.58 under the settlement agreement but failed to make further payments as and when they became due,” said Qad in court documents.

Qad says RVR disowned the agreement on the basis that the company had failed to finalise the work as agreed and will not admit liability unless all the work is completed.

Qad moved to Kwazulu-Natal High Court in South Africa where it obtained judgment against RVR in July last year.

The court ordered RVR to pay Sh60.3 million and interest from the time of the earlier settlement agreement in 2008 and settle cost of the suit.

Qad says it is seeking enforcement of this amount through a Kenyan court. But RVR has denied owing it any money. Further RVR says it is not aware of the order by the South African court.

“The defendant has no knowledge of the matters alleged at paragraph 16 (the award) of the plaint and puts the plaintiff to strict proof thereof.