MTN Business Kenya has filed a case in court against Iphone Global over a Sh8.2 million ($ 97,604.21) debt that accrued from internet services provided to the latter in 2007 and 2010.
The Business Daily reports that MTN submitted that defunct UUNet had failed and neglected to make any payment for the services and instead only made empty promises.
UUNet was to be pay on a monthly basis on receipt of invoices from the plaintiff who then had a meeting with the company directors and it was agreed on how the debt would be paid.
It later emerged that UUNet was selling its shares to Linkoff Communication Systems thereby prompting them to write to the buyer alerting it about the debt owed to them.
Iphone indicated that the potential buyer would settle the debt after the purchase of shares was concluded but this did not happen.
In 2013, MTN leased lines from Kenya Data Network, Telkom Kenya, Jamii Telecoms and Wananchi Group. It also launched a project to install its own fibre cable network.
“No payment has been done since we sent our last demand and a judgment should be entered against the defendants,” said Mr Obare Nyaenga the chief accountant at MTN.
Mr Nyaenga wants Iphone Global to honor their side of the bargain as it has been escaping responsibility.
Also sued are the directors of Iphone in their individual capacities because they were liable for all the claims they had before selling the company.
The court ordered that the company files its response to the case within 15 days.