Another Creditor Sues Reserve Bank.
Harare — Seed Co International Limited is suing the Reserve Bank of Zimbabwe over a US$3,6 million debt after the latter allegedly failed to pay for seed it ordered from the firm’s Botswana branch during the 2007 and 2008 farming seasons.
The firm issued summons in November last year and the bank never responded prompting Seed Co to apply for a default judgement at the High Court.
Justice Charles Hungwe is expected to make a ruling on the chamber application soon.
Artherstone and Cook Legal Practitioners are appearing for Seed Co while Chitapi and Associates are representing the central bank.
In the application, Seed Co submitted: “Defendant was served with a copy of summons on November 2 2009. Although they entered an appearance to defend on November 5, defendant has failed to plead. The defendant has lost right to defend the matter.”
According to the summons, during the 2007 and 2008 farming seasons, the RBZ ordered maize seed from Seed Co International’s Botswana depot.
In 2007, seed valued at US$6 376 350 was delivered to RBZ from Botswana and early 2008 another consignment of seed worth US$6 999 654 25 came in.
RBZ, according to the papers, had paid US$10 million by April 2008, leaving a balance of US$3 634 830 80.
It is Seed Co’s claim that the RBZ undertook to pay the balance in weekly installments of US$400 000 with effect from May 2008.
Seed Co said the payment plan was never fulfilled, prompting the firm to seek the High Court’s intervention to recover the money.