CIMERWA LTD v KIGALI CERAMICA FURNITURE LTD ET.AL
The Supreme Court held that the mere issuance of cheques by KCF Ltd did not constitute valid payment as the cheques were not backed by sufficient funds from issuance to expiration. The underlying debt remained enforceable, and KCF Ltd was obligated to pay the outstanding amount. Interest was awarded at the average lending rate published by the National Bank of Rwanda. The Court found no grounds to pierce the corporate veil and hold Karangwa Raymond personally liable. KCF Ltd was ordered to reimburse CIMERWA Ltd for the previously paid 11,650,000 Frw and to pay legal costs.
Source excerpt
- Negotiable instruments
- Breach of contract
- Cheque payment
- Interest calculation
- Corporate veil
- Unlawful enrichment