Celtel sues UTL for recovery of sh290m debt

By Hillary Nsambu CELTEL Uganda has sued Uganda Telecommunications Limited (UTL) for the recovery of over sh290m as a contractual amount, arising out of a breach of agreement.Celtel, through Odere, Nalyanya and Company Advocates, wanted judgment in a summary suit, which did not need UTL to present its case in court, saying the facts giving rise to the cause of action, were foregone conclusions that needed no reply from the defendant.But UTL, through Mulenga and Kalemera Advocates, are denying that the company is under any legal liability to pay. Celtel seeks sh297.2m plus 11% interest that allegedly arose out of an interconnection agreement between it and UTL.UTL filed a notice of motion in which it was seeking unconditional permission to defend the suit. In an affidavit supporting the request to be heard, UTL’s acting managing director Aimable Mpore said the case was wrongly filed because Celtel was not entitled to a summary judgment.UTL said it would be just and equitable to have the issues adjudicated upon after the court had heard evidence of both parties. Mpore said the content of the case was also the subject of an arbitration agreement. He said the entry of a summary judgment would derogate from UTL’s statutory right under the Arbitration and Conciliation Act 7 of 2000 to apply for the matter to be referred back to arbitration.Celtel said under an inter connection agreement dated January 20, 2000, UTL agreed to connect their respective telecommunication systems to enable exchange of telecommunications traffic across the network.