Unyiha to pay Yara Tanzania Sh476m for breach of contract

Dar es Salaam. The High Court in Dar es Salaam has ordered agricultural inputs dealer Unyiha Associates Limited to pay fertiliser producer Yara Tanzania Limited Sh476 million in unpaid money for fertiliser supplied.

Yara brought a suit against Unyiha in August 2020 after accusing the Mbeya-based company of breach of contract for failure to pay for a consignment of fertiliser sold to them. “Based on the facts adduced and the evidence availed to this court, it is clear that the plaintiff (Yara) has managed to prove its case to the required standard,” said Judge Deo Nangela in a decision issued last week.

The two companies had been enjoying a good business relationship and in February 2015 Yara entered into an agreement with Unyiha for supply of Sh466 million worth of fertiliser.

Under the purchase agreement, Unyiha was obliged to pay for the purchase price within four months from the date of invoice.

The fertiliser producer has alleged that the purchaser failed to pay for the consignment despite several reminders.

The case against Unyiha was decided after being heard one-sided after the company failed to file defence in court despite several calls to do so.

When the suit was scheduled for a Pre Trial Conference (an arrangement that allows defence and plaintiff lawyers to resolve a case before going forward) on April 23, 2021, neither Unyiha nor their advocate showed up in court. Following non-appearance of Unyiha, the court rescheduled the meeting to June 7, 2021 but the defendant was also absent even on that date, forcing the court to order that the case be heard ex parte, without waiting for response from the defendant. On August 8, 2021 a counsel for Unyiha appeared in court and prayed for time to file an application to set aside the order for ex parte hearing.

However, despite the order being granted and the court making order for the application to be filed before or on August 25th, 2021 and scheduled for hearing on November 8, 2021, Unyiha failed again to comply with the order.

At that stage, the court was left with no option but to order that the case be heard ex parte.

The judge was satisfied that that Yara discharged it obligation under the sale agreement by supplying fertiliser the defendant but the defendant failed to pay for the products supplied.

The court declared that Unyiha was in breach of contract and ordered them to settle the Sh466 million plus Sh10 million in general damages.

Last month, Yara and a businessman, Baraka Mhagama filed an agreement to end a Sh488 million case which the former had filed against the businessman they accused of breach of contract for the supply of fertilizer.

“I have gone through the deed of settlement file on February 10, 2022 and satisfied that the parties have arrived amicably into a lawful agreement which disposed the whole suit. In that lieu, the present case is marked settled,” said madam judge Zahra Maruma