By Mary Taruvinga
IRVINE’S Zimbabwe Limited is suing a Zvishavane-based company, Innoe Fraser Investments, after it failed to pay a debt of $1,645,583 incurred last March.
Irvine’s claim is based on an IOU signed by Innocent Ndlovu on behalf of Innoe Fraser on March 25 of this year.
Under the terms of the agreement, Ndlovu was supposed to pay the debt in full no later than May 31, 2021.
According to a summons to the High Court, the two parties also agreed that if Ndlovu failed to pay the full amount outstanding would become immediately due and the creditor would be entitled to sue for recovery of the debt without further prior notice.
It was also part of the deal which; “Interest will accrue on the unpaid balance at any time at the prescribed interest rate from May 31, 2021, until the date of final payment and/or until it reaches the amount of the induplum, whichever comes first.”
Both parties have further agreed that the creditor has the right to apply any payment made first to the clearance of any interest accrued on the unpaid amounts and, second, to the clearance of the oldest invoice.
Ndlovu was held responsible for legal costs, at both the legal practitioner and client level, and any collection fees charged by the creditor’s attorneys in connection with the collection of the claim.
Breach of contract was defined as the failure to pay on time, the conclusion of compromise or accommodation with any other creditor and any enforceable title of any court of competent jurisdiction remaining in force ten days after its issuance.
Ndlovu shall not assign, pledge, mortgage, alienate or otherwise dispose of his property or permit or cause it to be treated in any way which would or might have the effect of infringing the right or confer a preference in favor of any other party or any other person without the written consent of the obligee.
Despite the request, Ndlovu did not pay the debt as promised.
Irvine’s Zimbabwe is a Harare-based integrated poultry operation raising hens, eggs, broilers and day-old chicks.
The case has not yet been heard.