Kogi High Court has adjourned to April 18 to rule on a motion questioning its jurisdiction in a suit between Dangote Cement Plc and Modulous Nigeria Limited over default in payment of N8.2 million contract sum.
The presiding judge and Chief Judge of Kogi, Justice Nasir Ajanah fixed the date on Thursday when the suit on breach of contract instituted by the Modulus Nigerian limited, a liability company, came up for hearing.
Counsel to Dangote Cement Plc, Messrs Benjamin Alagani had filed a motion seeking an order of the court to strike out the claimants’ suit for want of jurisdiction.
Alagani argued that the suit, as presently constituted against his client was incompetent, and not properly filed within the jurisdiction agreed upon by parties in line with sub-section 9 of the contract agreement for the project.
Explaining, he said Sub-section 9 of the agreement provides that all disputes, differences in relation to the award of the contract between the defendant and the claimant shall be resolved at Lagos.
In their Statement of Claim, the claimants, Modulous Nigeria Limited that has Managing Director, Ayodele Durotifa averred that the defendant approached the 1st claimant to construct a block of two classrooms with an administrative block.
The project which was sited at the UBE Secondary School in Obajana community was to cost N8,276,109.
The claimant also averred that in line with the contract terms, it was expected to mobilise to site and commence work immediately when, either an advance payment was made or upon receipt of the Work Order (Contract document).
The claimant further averred that the defendant did not make any advance payment but issued the work order (Contract document) and being desirous to execute the project, it approached a private money lender for a loan of N1million to commence work.
The company said it mobilized to site, commenced execution and completed the first phased in February 2014 after which it submitted for verification and payment of the monthly progress bill for the work which was certified satisfactory and valued at N2.18 million.
Modulous Nigeria Limited said that Dangote Cement Plc breached the contract agreement as it declined payment, adding that it had to resort to litigation to claim its dues.
The company is claiming payment of N3.07 million (N3,070,049.99) being outstanding fees due to it from the work done for the defendant at Obajana in addition to N100,000 being 10 per cent monthly interest on the loan payable from January 29, 2014.
It is also seeking payment of interest of 20 per cent per annum on the debt being owed by Dangote Cement Plc from January, 2014 to the final payment of the debt.


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