Airtel dragged to court over breach of contract

A Lagos high court sitting in Igbosere, Lagos state, southwest Nigeria has ordered that notice of consequences of disobedience of court order and other court process filed against Airtel Network Limited be served on the Managing Director of the company through the mail room of the company.

The order of the court was sequel to a breach of contract suit file against Airtel Network Limited by a Limited Liability company, Dutchworks Limited.

Dutchworks company in a statement of claim filed before the court alleged that, following distribution agreement between the company and Airtel Networks, it was appointed one of the dealers of the communication company from 1 July 2009 to 30 June 2011.

Thereafter without the input of the defendant, Dutchworks procured a bank guarantee in the sum of N55 million while the defendant on its own procure for the claimant an Access Bank Plc guarantee in the sum of N55million.

The defendant (Airtel) was suppose to pay monetary incentives to the claimant (Dutchworks) titled Discount and Sales Incentives but it failed to do so. However after many months that the incentives were not paid by Airtel ,the claimant (Dutchworks) protested by writing a letter to the defendant stating the sum of N121,226,000 was due for payment.

However on 21 of April, 2016 the claimant received a letter calling in the bank guarantee which it could not pay leading to some serious and substantial loss as well as unquntifiable damages and eventually crippled Dutchworks’ business.

Consequently, the Dutchworka claims against the defendant are as follows: The sum of N121,226,000 being accrued sums of money owed to the claimant by the defendant by virtue of their agreement;

Interest at the rate of 21 per cent from 19th of January, 2011 until judgement. And thereafter at the rate of 10 per cent until judgement sum is liquidated. A declaration that the defendants letter of demand requesting for the payment of N55million secure guarantee is premature and invalid.

In its response and counter-claim filed before the court, Airtel Networks alleged that apart from discounts and incentives been regularly paid to the account of the claimant, its counter-claim is in the sum of N54,181,589.46.

According to Dutchworks, Airtel Networks has continuously disobeyed the order of the court directing it to allow Dutchworks Limited to have access to and to inspect evidence for its use in this suit in respect of the claimant’s account from the software of the communications company.

he continuous disobedience of the court order necessitated the court to order the claimant to serve notice of consequences of disobedience on the defendant by substituted means.

The presiding Judge, J.Sonaike adjourned the case till 24 May,2016 for hearing.
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About Abula Gist

'Tunde Ojedokun is an Editor working for Lappyphone, he loves technology. You can't see him without a gadget. .


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