GATSIBO DISTRICT v. V.CO LTD

GATSIBO DISTRICT v. V.CO LTD

The Supreme Court held that each extension of the contract duration constituted a new contract for the additional period, and that V.CO Ltd was entitled to payment for supervision services rendered during the extended period at the agreed monthly rate. The request for payment for additional works did not constitute a change in the contract price, as the price per month remained as per the original financial submission. The District's refusal to pay was unjustified, and the applicant's claim for review on grounds of injustice was unfounded.

Citation
RLR V.1-2025
Parties
Applicant: Gatsibo District; Respondent: V.CO Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
26 May 2023
Case Number
RS/INJUST/RCOM 00007/2022/SC
Procedural Posture
Commercial Contract Dispute / Supreme Court Review on Grounds of Injustice
Outcome
Application for review dismissed; partial modification of lower court's judgment regarding quantum of payment.
Legal Topics
Contract Interpretation, Additional Works, Payment Obligations, Extension of Contract Duration, Damages
Source Language
en
Contract Law Public Procurement Contract Interpretation Additional Works Payment Obligations Extension of Contract Duration Damages

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Parties

Gatsibo District

Applicant

V.CO Ltd

Respondent

Procedural Posture

Commercial Contract Dispute / Supreme Court Review on Grounds of Injustice

Legal Issues

  1. 1 Whether Gatsibo District is obliged to pay V.CO Ltd for supervision services rendered during the extended period beyond the original contract term
  2. 2 Whether requesting payment for additional works constitutes an impermissible change in contract price
  3. 3 Whether damages and legal costs should be awarded

Ratio Decidendi

The Supreme Court held that each extension of the contract duration constituted a new contract for the additional period, and that V.CO Ltd was entitled to payment for supervision services rendered during the extended period at the agreed monthly rate. The request for payment for additional works did not constitute a change in the contract price, as the price per month remained as per the original financial submission. The District's refusal to pay was unjustified, and the applicant's claim for review on grounds of injustice was unfounded.

Court Disposition

Application for review dismissed; partial modification of lower court's judgment regarding quantum of payment.

Orders

  • Gatsibo District to pay V.CO Ltd 24,530,133 FRW for additional works.
  • Gatsibo District to pay V.CO Ltd procedural fee of 300,000 FRW and advocate fee of 500,000 FRW (total 800,000 FRW).