Paramount Hospital Ordered to Pay Shs48 Million for Unpaid X-ray Machine

Paramount Hospital Kampala Limited faces a court-ordered payment of over Shs48 million to Medequip Uganda Limited following a dispute over an X-ray machine. The High Court in Kampala, presided over by Acting Judge Simon Peter M. Kinobe, ruled that the hospital breached its contractual obligations after taking delivery of a Fuji CR System X-ray machine.

The court awarded Medequip Uganda Limited Shs42,018,000 in special damages and Shs6 million in general damages, along with accrued interest and legal costs. The special damages will accrue interest at a rate of 20 percent per annum from the date the lawsuit was filed until full payment, while the general damages will attract a 6 percent annual interest from the judgment date.

The case originated from a November 2, 2019, agreement where Medequip agreed to supply the X-ray machine for Shs75 million. Under the terms, Paramount Hospital was expected to pay a Shs30 million deposit within two weeks of delivery, with the remaining balance to be settled via post-dated cheques within six months.

However, the hospital failed to adhere to the agreed payment schedule. Medequip informed the court that while an initial Shs25 million was received, payments ceased in 2020, leading to the lawsuit. Paramount Hospital did not file a defense, resulting in an interlocutory judgment against them in July 2023.

Despite the lack of defense, the judge emphasized that the plaintiff must still prove their case. Evidence presented, including the sales contract, delivery documents signed by a hospital representative, and records of payments, confirmed that Paramount Hospital owed Medequip Shs42,018,000. The judge noted that the hospital’s failure to pay hindered Medequip’s business operations, constituting a fundamental breach of contract.

Source: https://www.monitor.co.ug/uganda/news/national/court-orders-paramount-hospital-to-pay-shs48m-over-x-ray-machine-debt-5578414