Breach of contract: contractor sues Mangu LG over unpaid N16m debt
NAN-H-14
Debt
Pankshin (NAN) Nov. 17, 2016 (NAN) A contractor, Sunday N. Madu Ltd., has dragged Mangu Local Government Council before Justice Nanpon Dadi of Plateau State High Court in Pankshin over alleged N16.25 million debt.
The contractor, in its statement of claim, alleged that the council in 2004 awarded it a contract in the sum of N45, 649, 702.38 for it to furnish the council’s new administrative block in the secretariat complex.
The counsel to the contractor, Mr Gideon Kuttu, told the court that the council only paid N27, 389, 821 out of the contract sum, leaving a balance of N16.25 million.
Kuttu, therefore, prayed the court to make an order compelling the council to pay the outstanding N16.25 million with a monthly 25 per cent interest on the amount with effect from Dec. 2014.
“My Lord, the plaintiff on several occasions approached the defendant for the payment, but the defendant has remained defiant and uncooperative, ’’ he said.
He asked the court to compel the defendant to pay the liability and another N2.008 million being interest accrual from the said contract sum after tax and another payment of 10 per cent per annum on the said unpaid amount.
The Defence Counsel, Mr Mordecai Chup, who consented to the liability of N16.25 million, however, objected to the two million naira liability, saying the said amount had been paid to the contractor.
“My Lord, even though my client is aware of the N16. 25 million debt, it had paid the alleged N2.008 million to the plaintiff long ago, ’’ he said.
Chup, however, applied for adjournment to enable him prepare his defence.
The plaintiff’s counsel denied receipt of the said money and argued that the onus was on the defendant to prove he had paid the alleged sum.
Justice Dadi, after listening to the lawyers’ arguments, adjourned the ruling to Jan 19. 2017. (NAN)
TYC/KOO/TA
Edited by Kevin Okunzuwa/Tajudeen Atitebi