Reneging BR ordered to pay supplier P7.8 m with interest

BR (respondent) had stopped paying Excess Petroleum (appellant) due to its protestation regarding the price. BR admitted that it had reneged on payment as it determined that Excess Petroleum was overcharging it.

The amount is to be paid with interest from the time of the delay thereon at the rate of 10% per annum. Excess Petroleum won a tender to supply 9,964,000 litres of fuel and delivered at the contract price of P44.8 million for five years commencing first of July 2009. Over the period, BR made partial payments while the other amounts remained unpaid.