BANQUE POPULAIRE DU RWANDA PLC v. AKARERE KA NYAMASHEKE
The Supreme Court held that while the applicable law (Article 78 of Law No. 12/2007) prescribes 1% daily interest for late payment of public procurement guarantees, the resulting sum (639,923,932 Frw) was manifestly excessive compared to the principal (19,935,235 Frw) and the actual loss. The Court exercised its discretion to reduce the interest to an amount equal to the guarantee, preventing unjust enrichment and aligning with principles of proportionality and fairness.
Source excerpt
- State contracts
- Performance guarantees
- Delay penalties
- Interest on late payment
- Judicial review
- Retroactivity of law