TANGANDA Tea Company has won a dispute at the High Court with a trader it advanced tea worth US$47 493 for resale in Malawi.
Tanganda cited trader Darlington Matsitukwa as respondent in its case.
The court heard that prior to January 1, 2018, Tanganda and Mutsitukwa entered into an agreement in which the company agreed to sell tea products worth US$47 493,17 to the respondent for resale in Malawi.
Matsitukwa failed to pay for the tea products.
Tanganda then sued Matsitukwa under HC9854/18 and only ZWL$5 876,38 was recovered.
Matsitukwa proceeded to make two payments of ZWL$16 000 and ZWL$25 717,70 to the trust account of Tanganda’s legal representatives.
Tanganda rejected the payments insisting that the debt be settled in foreign currency since the products were sold outside the country.
Matsitukwa argued that Tanganda waived the right to be paid in foreign currency.
- Fresh land invasions hit Whitecliff
- Pomona cash row escalates
- Border Timbers targets European markets
- SA name strong A side for Zim tour
Keep Reading
He argued that following the issuance of the judgment under HC 10306/18, a writ of execution was duly issued, resulting in ZWL$5 876,38 being realised from him.
Matsitukwa urged the court to note the deduction of the payment in local currency from the principal sum of US$47 483,17 by Tanganda, leaving the balance at US$41 616,79 which it claimed in the summons for civil imprisonment under HC6686/19.
Matsitukwa argued that requiring him to pay the debt in United States dollars would be unjust and inequitable.
High Court judge Justice Faith Mushure ruled in favour of Tanganda.
“The defendant’s attempt to establish a tacit waiver in this regard is irreconcilable with the admission highlighted in the statement of agreed facts,” Justice Mushure ruled.
“The plaintiff cannot be taken to have either expressly or tacitly waived its right in respect of the outstanding US$41 616,79.
“Accordingly, it is ordered that the claim partly succeeds, the debt of US$47 493,17 against the defendant be and is hereby declared to be a foreign obligation in terms of s44C(2)(b) as read with s44C(10)(d) of the Reserve Bank of Zimbabwe Act [Chapter 22:15].”
The judge added: “The amount of US$5 876,38, be and is hereby deducted from the capital sum of US$47 493,17, payable to the plaintiff by the defendant and the defendant be and is hereby directed to liquidate the judgment debt of US$41 616,79 with interest at the prescribed rate from September 30, 2018 to the date of full payment.”
