HomeNewsLongcheng Plaza sues night club owner

Longcheng Plaza sues night club owner

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CHINESE company, Longcheng International Trade and Commerce (Pvt) Ltd, trading as Longcheng Plaza, has dragged a local engineer, A T Parehwa, and his company, IBI Holdings (Pvt) Ltd, trading as Radost Night Club, to the High Court demanding over $48 000 in outstanding refurbishment fees.

BY STAFF REPORTER

In a separate lawsuit, the engineer is also being sued by a local furniture manufacturing firm, Horizon Ivato Zimbabwe (Pvt) Ltd, which is demanding $11 958 for the furniture, which the night club purchased sometime in 2014.

According to summons filed at the High Court, sometime in 2013, Longcheng Plaza entered into a contract with IBI Holdings (Pvt) Ltd to refurbish and decorate its business premises at Longcheng Plaza Shopping Mall.

“It was a material term of the agreement between the parties that the plaintiff (Longcheng) would supply the materials for the refurbishment, provide the labour and construction equipment. It was a further material term of the contract that the first defendant (IBI Holdings) would pay the amount of $57 298, which was the agreed cost of the contract between the parties,” the Chinese firm said.

“Despite the completion of the refurbishment, as per the agreement, first defendant only managed to pay $5 700, leaving an outstanding balance of $48 598, thereby, breaching its agreement with the plaintiff.

“Second defendant (Parehwa) is the managing director of the first defendant and he acted as its agent in all the transactions with the plaintiff, hence, liability has become joint and several.”

Meanwhile, Horizon Ivato Zimbabwe (Pvt) Ltd said sometime in March 2014, it entered into an agreement with Parehwa’s night club, where it supplied furniture on credit at agreed terms.

“The furniture supplied by the plaintiff (Horizon Ivato) to the first defendant (Radost) included five air-conditioners, genuine leather sofas, tea tables, a round table and chairs worth $24 908,” Horizon Ivato said.

“It was a further term of the agreement between the parties that the first defendant would pay the purchase price in six monthly instalments beginning July 1, 2014 and would extinguish the debt by December 31, 2014.

“The first defendant failed to pay the amount due to plaintiff as per the agreement and managed to pay $12 950, leaving an outstanding balance of $11 958.”

Parehwa has since entered appearance to defend notices in respect of both matters.

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