The High Court has ordered Roko Construction Limited to pay Shs 3.92bIllion to Mehta Electricals Ltd for unpaid electrical equipment and installation works carried out on several projects.
Rokois a leading Ugandan construction and civil engineering company established in 1969 by Max Rohrer and Rainer Koehler. Based in Kawempe, Kampala, it specializes in high-rise buildings, infrastructure, and structural steel, serving Uganda and East Africa. Despite holding significant government contracts and being named a top contractor, the company has faced financial challenges in recent years.
The dispute stems from sub-contracts awarded in May 2016, when Mehta Electricals Ltd was engaged to undertake electrical installations for three SGS Automobile Uganda Limited sites in Mengo, Masaka and Entebbe at a total contract price of Shs 2.77billion
Mehta Electricals was also contracted to undertake works at Lotigo Army Venue, where Shs 2.31billion was certified as due and payable. Roko paid Shs 2.23billion leaving a balance of Shs 77.9m.
At the Luthuli site, Mehta Electricals carried out installation works certified at Shs 1.48billion. Roko paid Shs 666.1m), leaving a balance of Shs 810.3million
For the Imperial Botanical Hotel Suites project, Shs 11.15billion was certified as due and payable. Roko paid Shs 9.70bn), leaving a balance of Shs 1.46bn).
In total, Mehta Electricals sued Roko Construction for Shs 4.68billion being unpaid dues for electrical supply and installation works across five project sites, together with interest and costs.In its defence, Roko raised a preliminary objection arguing that the matter should have been referred to arbitration and not determined by court.
The company also disputed performance and certification, alleging that Mehta Electricals failed to complete some works on time and left defects, and that the amounts claimed were not fully certified.
However, the court observed that Roko did not deny the existence of payment certificates but argued that they only confirmed work done, not full payment obligations.
“I also note that in its defence, the defendant does not deny the existence of the payment certificates and avers that in as much as they were issued, they were issued to confirm the work done but not that all the payments therein were to be made,” the court observed.
Ag. Judge Dr. Ginamia Melody Ngwatu held that the court could not award the full sum as pleaded in the plaint but would instead rely on amounts directly attributable to the transactions in issue.
“The counter-claim is dismissed with costs to the counter-defendant. The defendant shall pay the costs of this suit,” the court ruled.
Court ultimately entered judgment in favour of Mehta Electricals Ltd and ordered Roko Construction Limited to pay Shs 3.92billion, together with commercial interest from the date of filing the suit until full payment.
