Description
Failure to file witness statement – claim of interest from foreign exchange loss – interest on debts arising from commercial transactions – implied term of contract – financial loss – percentage of outstanding debt.
- Failure on the part of the defendant to file a witness statement within the prescribed requisite time (7 days after completion of mediation) amounted to failure to defend the suit. As a result, it was ordered that the suit should proceed ex-parte (p. 4).
- For a claim arising from foreign exchange loss to be successfully established, the plaintiff would have to lead evidence which prove that he purchased and imported a consignment in United States Dollars. And such proof should be done by producing Telegraphic Transfer of USD from the plaintiff to any company or supplier or by producing as Exhibit a Bill of Lading or any relevant documents which prove importation of the consignment in the country. In the absence of proof which shows the plaintiff purchased the consignment in United States Dollar, and in absence of importation documents of the alleged fertilisers, it follows that, the plaintiff’s claim of interest arising from foreign exchange loss remained to be unsubstantiated (p. 7).
- From business efficacy, trade and usage, always debts arising from “commercial transactions like the one entered between the plaintiff and defendant of sale of fertilisers if are not paid within the agreed period or “reasonable period” which in my view is within six months periods such debts attract interests like bank debts. The main reasons of assuming that, the outstanding debt attracts interest is due to the fact that business efficacy and the nature of trade always require prompt payment of purchase price and failure to that, the retained sum attracts interests(p. 8).
- A contract term can be implied if it is necessary to give efficacy to the contract (p. 8).
- Financial loss – definitely the defendant’s act of retaining a sum of Shs 100,000,000/= which was due and payable as purchased price certainly caused the plaintiff to suffer financial loss for three consecutive years. It is certain that, had the sum of Shs 100,000 000 been paid within a reasonable period of time, say within 6 months, the plaintiff would have invested the sum into his own business and make profit. Since that was no done, the plaintiff suffered loss (p. 9).
- It is established practise that, “interest” is payable on the basis of percentage of outstanding debt (p. 10).
