ECOBAGEC Ltd v. SORAS AG Ltd

The court held that ECOBAGEC Ltd cannot delay payment to SORAS AG Ltd due to non-payment by third parties, confirmed the 13% interest rate as reasonable and below the contractual rate, found the legal costs awarded were not excessive, and denied the penalty for delayed payment as discretionary. Additional legal costs in appeal were awarded to SORAS AG Ltd.

Citation: ECOBAGEC LTD V. SORAS AG LTD
Parties: Applicant: ECOBAGEC Ltd; Respondent: SORAS AG Ltd; Third Party: RURANGWA Jean Damascene
Court: Commercial High Court
Jurisdiction: Rwanda
Judgment Date: 20 February 2014
Case Number: ECOBAGEC LTD V. SORAS AG LTD
Procedural Posture: Commercial Appeal / Final Judgment
Outcome: appeal dismissed, cross-appeal partially allowed
Legal Topics: Guarantee, Delay in Payment, Interest Rate, Penalty for Non Payment, Legal Costs
Source Language: rw, en

Contract Law Commercial Law Guarantee Delay in Payment Interest Rate Penalty for Non Payment Legal Costs

Case Brief

Summary, issues, holding and outcome

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Full judgment text Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 5

Parties

ECOBAGEC Ltd

Applicant

SORAS AG Ltd

Respondent

RURANGWA Jean Damascene

Third Party

Procedural Posture

Commercial Appeal / Final Judgment

Legal Issues

1 Whether ECOBAGEC Ltd is entitled to extension of time for payment due to non-payment by third parties
2 Whether the interest rate applied by the lower court was correct
3 Whether the legal costs awarded were excessive

Ratio Decidendi

Court Disposition

appeal dismissed, cross-appeal partially allowed

Orders

ECOBAGEC Ltd to pay SORAS AG Ltd 500,000 Frw for legal costs and follow-up in appeal, in addition to prior awards
ECOBAGEC Ltd to pay 5,850 Frw for appeal court costs