[2005] UGSC 10

[2005] UGSC 10

The Supreme Court held that the operative date for the accrual of interest on the principal sum under the interconnection agreement is the date when the invoice is issued and received, signifying acceptance by both parties of the traffic reconciliation. The agreement anticipates possible disputes and provides...

Source-derived case information.

Citation
[2005] UGSC 10
Parties
Appellant: M.T.N (U) Ltd; Respondent: Uganda Telecom Ltd.
Court
Supreme Court of Uganda
Jurisdiction
Uganda
Case Number
Civil Appeal 13 of 2004
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeal dismissed
Judges
Odoki, CJ, Oder, JSC, Karokora, JSC, Mulenga, JSC
Legal Topics
Contractual Interest, Telecommunications Interconnection, Contract Construction, Payment Liability
Source Language
en
Commercial and Corporate Telecoms and Media Contractual Interest Telecommunications Interconnection Contract Construction Payment Liability

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Parties

M.T.N (U) Ltd

Appellant

Uganda Telecom Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

  1. 1 What is the correct date from which interest on the principal sum owed under the interconnection agreement should begin to accrue.
  2. 2 Whether the issuance of an invoice is a condition precedent to the accrual of interest under the agreement.
  3. 3 How the interconnection agreement should be construed regarding payment and interest obligations.

Ratio Decidendi

The Supreme Court held that the operative date for the accrual of interest on the principal sum under the interconnection agreement is the date when the invoice is issued and received, signifying acceptance by both parties of the traffic reconciliation. The agreement anticipates possible disputes and provides mechanisms for resolution, including reconciliation, acceptance, and, if necessary, independent audit and regulatory intervention. The issuance of an invoice is a condition precedent to payment and the accrual of interest. The court rejected the appellant's argument that interest should accrue from the expiry of forty-five days after receipt of traffic reports, finding that the...

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed with costs to the respondent in the Supreme Court and courts below.
  • The respondent is liable to pay the appellant UGX 200,552,609 with interest at court rate from the date of judgment until payment in full.