NITEL to pay N14bn damages to Interstella

Delivering judgement, the presiding judge, Justice H.T. Soba, on suit No. FHC/Um/CS/95/2004 between Interstella Communications Limited who is the plaintiff, and NITEL as the defendant, granted all the claims of the plaintiff as endorsed in the statement of claim including that defendants conduct breached the contract by failing, or refusing or neglecting to provide the services contracted by the defendant when it leased out its 36 E1 switched ports, 9 E1 transmission links and half STM1 circuit on SAT 3 to the plaintiff.

The court also ordered the defendant to immediately provide the plaintiff with half the STM1 circuit on SAT3, which the plaintiff has paid for, since October 2006.

Payment by the defendant to the plaintiff of the sum of N1.944 billion per annum as revenue accruable to the plaintiff per annum from its investments on the 36 E1 switch ports and 9 transmission E1 beginning from 2002 and continuing thereafter until the accumulated sum is paid in arrears.

Equally, the court directed that a payment of two million-four hundred and eighty US dollars per month be made to the plaintiff beginning from April 2007 to date until all arrears are paid up.

The sum of two billion Naira was also awarded as compensation for damages inflicted on the plaintiffs business, the corporate goodwill, image and integrity, reputation, financial loses occasioned and flowing directly and being reasonably foreseeable as direct consequences of the defendants conduct, with an interest rate of 30%.

Apart from the declaratory orders, and the interest accruing from the judgement, the immediate financial implication of this judgement is that as of 6 November 2007, NITEL will be liable to pay a total sum of N11.72 billion and $14,150,000.00 to Interstella Communications Limited.

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