Uganda's High Court Commercial Division has rejected efforts by Rushfah Trading Co. Ltd to avoid paying $67,000 to Chinese contractor Chongqing International Construction Corporation. Justice Susan Odongo determined that the company's attempt to delay the execution of a 2021 consent judgment lacked merit. The ruling dismissed Rushfah's contention that payment should wait for the resolution of separate proceedings against Dubai-based BiEnergy General Trading LLC. The judge emphasized that any conditions regarding payment would have been explicitly stated in the original consent agreement. This decision effectively blocks further delay tactics by the trading company.
The legal battle originated in 2019 when CICO pursued Colas East Africa Ltd for nearly $695,000 over defective bitumen supplied for road construction projects. Colas subsequently involved Rushfah Trading as a third party, alleging the company had procured the substandard material through BiEnergy. Quality control inspections revealed that the bitumen failed to meet specifications and contained irregular documentation. Rushfah acknowledged sourcing the material but attributed the defects to its Dubai supplier. The parties eventually reached a consent judgment in July 2021 establishing payment obligations and material transfer terms.
Justice Odongo ruled that liability questions were definitively settled through the consent judgment, preventing Rushfah from using pending third-party litigation to avoid compliance. The court ordered Rushfah to pay legal costs to CICO.
The legal battle originated in 2019 when CICO pursued Colas East Africa Ltd for nearly $695,000 over defective bitumen supplied for road construction projects. Colas subsequently involved Rushfah Trading as a third party, alleging the company had procured the substandard material through BiEnergy. Quality control inspections revealed that the bitumen failed to meet specifications and contained irregular documentation. Rushfah acknowledged sourcing the material but attributed the defects to its Dubai supplier. The parties eventually reached a consent judgment in July 2021 establishing payment obligations and material transfer terms.
Justice Odongo ruled that liability questions were definitively settled through the consent judgment, preventing Rushfah from using pending third-party litigation to avoid compliance. The court ordered Rushfah to pay legal costs to CICO.
