ENGIN LTD v WASAC LTD

ENGIN LTD v WASAC LTD

ENGIN LTD failed to raise the alleged procedural defects and legal grounds in the original proceedings; therefore, these cannot be reviewed as injustice. The penalties for late completion were lawfully imposed per contract and applicable law, calculated on the contract value including taxes and on all calendar days. There was no legal basis to require deduction from the performance guarantee. ENGIN LTD failed to prove entitlement to damages. The application for review is dismissed and ENGIN LTD is ordered to pay WASAC LTD legal costs.

Citation
RS/INJUST/RCOM 00001/2023/SC
Parties
Applicant: ENGIN LTD; Respondent: WASAC LTD
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
15 March 2024
Case Number
RS/INJUST/RCOM 00001/2023/SC
Procedural Posture
Civil Commercial Review (extraordinary Remedy) / Supreme Court Final Judgment on Review for Injustice
Outcome
Application for review dismissed; original judgment upheld.
Legal Topics
Contractual Penalties, Public Procurement Disputes, Calculation of Damages, Review for Injustice, Burden of Proof
Source Language
rw, en
Contract Law Public Procurement Civil Procedure Contractual Penalties Public Procurement Disputes Calculation of Damages Review for Injustice Burden of Proof

Case Brief

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Parties

ENGIN LTD

Applicant

WASAC LTD

Respondent

Procedural Posture

Civil Commercial Review (extraordinary Remedy) / Supreme Court Final Judgment on Review for Injustice

Legal Issues

  1. 1 Whether penalties for late completion were lawfully imposed under the contract and applicable law
  2. 2 Whether such penalties should have been deducted from the performance guarantee or from the final payment
  3. 3 Whether the contract value for penalty calculation should include taxes

Ratio Decidendi

ENGIN LTD failed to raise the alleged procedural defects and legal grounds in the original proceedings; therefore, these cannot be reviewed as injustice. The penalties for late completion were lawfully imposed per contract and applicable law, calculated on the contract value including taxes and on all calendar days. There was no legal basis to require deduction from the performance guarantee. ENGIN LTD failed to prove entitlement to damages. The application for review is dismissed and ENGIN LTD is ordered to pay WASAC LTD legal costs.

Court Disposition

Application for review dismissed; original judgment upheld.

Orders

  • ENGIN LTD to pay WASAC LTD 800,000 Frw for legal costs and advocate fees.
  • No change to the judgment of the High Commercial Court in RCOMA00646/2020/HCC.