ELSE Addis Backlog Payment Given Decision

ELSE Addis should pay about 28.2 million Br in backlogged cotton delivery payments to Upper Awash, in addition to nine percent interest, to be calculated from February 1st last year, the Seventh Bench of the Federal High Court in Lideta has ruled. The Court also recognized Upper Awash’s right to calculate and ask for litigation expenses incurred during the process of the case. Upper Awash Agro-Industry Enterprise, a company which produces cotton, brought a suit against ELSE Addis Trading Industrial Development Plc, a textile company, claiming that it had not been paid for around 28 million Br worth of cotton. Although Upper Awash issued a warning letter to ELSE on February 1, 2016 regarding the payment, it had still not received the money, according to the suit.

However, ELSE claimed that Upper Awash delivered sub-standard cotton, below the requirement of one micro air volume four, according to examinations performed at their own laboratory. They also claimed that the reduction in the amount that Upper Awash said it was owed showed inconsistency: while the amount they were initially asked to pay was 29 million Br the suit was for 28.2 million Br.

In making a decision, the Court mentioned that while the defendants had the right to claim that the cotton was sub-standard, Upper Awash, did deliver the cotton and ELSE Addis did receive it, and pay some amount towards the total cost. This made the defence’s points regarding quality invalid, according to the Court.

Published on Apr 14,2017 [ Vol 17 ,No 884]



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