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RVR ordered to pay British supplier Sh106 million

A Rift Valley Railway
A Rift Valley Railways locomotive. FILE PHOTO | NMG 

The High Court has ordered Rift Valley Railways (RVR) to pay a supplier of equipment and spare parts more than Sh106 million.

Justice Mary Kasango ruled that Greco International Limited, a company incorporated in the United Kingdom, had proved that RVR owed them the stated amount.

“The plaintiff has proved on a balance of probability that the defendant was indebted to it for the amount claimed in this matter. That evidence was not controverted since the defendant failed to give evidence. Accordingly the plaintiff succeeds in its claim,” the judge ruled.

Justice Kasango directed RVR to pay the amount plus interest.

The case was filed in court in 2015 as Greco argued that it supplied the parts and RVR paid part of the amount but refused to settle the balance.

After several months of negotiations, Greco moved to court seeking judgment for $1,043,784.97 (Sh106,142,394 at the current exchange rates).

In response, RVR filed a counterclaim demanding Sh29 million ($284,936), arising from alleged damages. RVR said it undertook verification to ascertain whether the spare parts delivered were in conformity with the contract.

It was alleged that the parts did not meet specifications in the contract and that they were not all delivered as agreed.

The two companies thereafter engaged in reconciliation as specified in the contract, for about two years.

After moving to court, RVR raised an objection saying the court did not have jurisdiction to hear the case. This was rejected but again, the company filed another application, demanding the British company furnishes security for costs. This was also dismissed by the court.

The company, the court heard, has been doing the same business with RVR for several years now.

In the said deal, it would raise purchase orders against which it would supply the parts.

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