The High Court has directed a software supplier to pay betting firm MozzartBet Sh256 million after failing to deliver an IT platform two years ago.
MozzartBet said Kimaco Connections received funds to supply the software in August 2020, to be used in gambling business but did not meet their end of the bargain.
MozzartBet wanted the court to compel the Kenyan firm to deliver the software or refund the money.
“Judgment be and is hereby entered for the plaintiff (MozzartBet) against the defendant for Sh256,051,910.00 together with interest of the sum at court rates from the date of filing of the suit until payment in full,” the judge said.
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The Kenyan firm had indicated that parties would seek an out-of-court settlement but failed to file any response to the case. The court heard that MozzartBet made an advance payment of Sh256 million inclusive of taxes to the supplier’s bank accounts.
And despite receiving the funds, the supplier only performed 10 percent of the work and breached the terms of the contract. The project was to be completed within 24 months.
MozzartBet told the court that the supplier failed to update it on the progress of the project.
“Despite the substantial payment against the invoices, the defendant did not supply the goods and no justifiable reason has been advanced for the delay in the performance of its obligations,” Mr Rodney Rono, a representative of MozzartBet said in an affidavit.
Mr Rono said failure to deliver the software shows that the contract was tainted with deception.
The betting firm produced a schedule of M-Pesa transfer payments which include the dates, transaction codes, status of the transaction and the amount paid, to support its claim.
The transaction details show that the payments were done through the M-Pesa business paybill transfer through API (Application Programming Interface), which is a system developed to enable access to M-pesa services for large transactions.
“From my appreciation of the uncontested evidence, it is clear that the parties entered into the agreements and the defendant breached its part of the bargain,” the judge said.
Justice Majanja said apart from breaching its obligations, MozzartBet had proved that it made payments. “I find the plaintiff has proved its case against the defendant on a balance of probabilities,” the judge said.
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