HomeNewsTobacco firm sues Munhumutapa Holdings over $1,5m farming inputs

Tobacco firm sues Munhumutapa Holdings over $1,5m farming inputs

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MASHONALAND Tobacco Company (Pvt) Ltd has taken Munhumutapa Holdings (Pvt) Ltd together with its director, Isaac Takawira, to court claiming $1 562 124,37 after the parties failed to reach a settlement for the payment of farming inputs supplied in 2010.

BY CHARLES LAITON

Mashonaland Tobacco Company in October issued summons against Munhumutapa and Takawira for the recovery of the cash and the latter is said to have made undertakings that the debt would be settled, but later reneged on the parties’ payment agreement.

This did not go down well with the tobacco company, which on Thursday approached the court seeking a summary judgment against Munhumutapa and Takawira.

“This is an application for a summary judgment for the first and second respondents (Munhumutapa and Takawira) jointly and severally, the one paying the other to be absolved to pay to the applicant (Mashonaland Tobacco); the sum of $1 562 124,37 together with interest thereon at the rate of 8% per annum calculated from April 1, 2011 to the date of payment in full,” the company’s farm debt manager, Trevor Mapiye, said in his founding affidavit.

“Having gone through the appearance to defend, the applicant is of the view that the said notice of appearance to defend has been entered purely for the purposes of delaying these proceedings and delaying the inevitable as the respondents does not have a bona fide defence to the applicant’s claim.”

Mapiye said the claim arose from an agreement entered into between his firm and Munhumutapa Holdings in June 2011, whose purpose was to provide terms for which the latter would settle admitted liability to the tobacco company for the farming inputs supplied in 2010.

According to the agreement, Mapiye said Munhumutapa and Takawira were obliged to pay the money by March 31, 2014 but this was not done, thereby breaching the terms and conditions of the agreement leading to the summons being issued.
The matter is yet to be set down for hearing.

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