By Our Reporter

The High Court’s Commercial Division in Lilongwe has ruled that Prima Fuels Limited and the Malawi Government are entitled to recover billions of kwacha in fuel supply refunds from TotalEnergies Marketing Limited, marking a major development in one of the country’s biggest commercial disputes.

The ruling concerns unpaid fuel supply rebates covering a six-year period from 10 July 2013 to 11 July 2019, following an alleged breach of a fuel supply agreement.

Through the Ministry of Finance and Economic Planning, represented by Attorney General Frank Mbeta, the Malawi Government is seeking approximately K824 billion (about US$180 million) in unpaid rebates. Prima Fuels Limited is separately claiming US$300 million under the same dispute.TotalEnergies Opens 79th Service Station in Malawi, Expands Investment in Blantyre

In a judgment delivered on Thursday, Justice Trouble Kalua ruled that all unpaid monthly refunds falling within the six years before the commencement of the lawsuit are legally recoverable. However, he held that claims dating back beyond the six-year limitation period cannot be enforced under the law.

“Every monthly payment from today going backwards for six years would be within the limitation period. And every monthly payment unpaid going beyond six years backwards would be caught by the statute,” Justice Kalua ruled.

The court also addressed the legal status of the fuel supply agreement after TotalEnergies Marketing Limited issued a letter dated 29 March 2012, which the court found amounted to an anticipatory repudiation of the contract.

However, Justice Kalua held that Prima Fuels Limited never accepted the repudiation, meaning the fuel supply agreement remained legally valid and enforceable despite the letter.

The decision clears the way for the recovery of refunds that accrued during the legally permissible period while excluding claims that fall outside the statutory limitation period.PIL invests K17 million in solar-powered water system for Kasumbu CDSS

TotalEnergies Marketing Limited, the first defendant in the matter, is represented by Senior Counsel Mordecai Msisha and Patrice Nkhono, alongside Alfred Majamanda. Prima Fuels Limited is represented by Wapona Kita.

The ruling is expected to have significant financial implications for all parties involved, given the billions of kwacha and hundreds of millions of US dollars at stake in the long-running commercial dispute.Scorchers Set for WAFCON Baptism of Fire Against Champions Nigeria