The Federal High Court's Eighth Civil Bench found Nile International Plc liable in absentia for 12.5 million Br with interest to be paid to Nile Business Group Plc on July 20, 2010, for failing to pay a promissory note of the same value to the latter.

Nile International handed a promissory note of 12.5 million Br to Nile Business Group on May 8, 2009. The note, which was prepared in order to settle a previous loan received in kind from Nile Business Group, was due to be paid on June 7, 2010.

However, Nile International defaulted on the amount and was not willing to make subsequent payments, despite the notices given to them, Nile Business Group claimed in a summary proceeding to the High Court on July 1, 2010. Nile Business Group claimed the amount on the promissory note plus interest and litigation expenses. The plaintiff also requested an injunction order to be passed on 20 trucks that they said the defendant was trying to sell to avoid making the payment.

The court ruled in favour of the plaintiff on July 20, 2010, in absence of the defendant who failed to present its defence to the court after the summons was delivered to it. The amount claimed (12.5 million Br) in addition to nine per cent legal interest calculated from the day the suit was filed until payment is to be made in full and litigation expenses should be paid to Nile Business Group, the court said.

Nile International Plc, which was registered in 1999, engages in buying heavy and light freight and liquid transport vehicles for sale and rental purposes. The company, which has a paid up capital of 10.4 million Br, was founded by Temesgen Mehari, who is also the majority shareholder, as well as Mehari Bitew.