adminMICRO KING Finance (Private) Limited, a subsidiary of AfrAsia Bank Zimbabwe Limited (formerly Kingdom Bank), has been slapped with a $200 000 lawsuit by Bulawayo-based company Chris-David Marketing after the micro-finance company allegedly misplaced the latter’s title deeds which were submitted to the former as collateral.
Chris-David Marketing filed a lawsuit at the Bulawayo High Court demanding $200 000 from Microking Finance (Pvt) Ltd for the inconvenience caused after failing to produce the title deeds.
It is alleged that Chris-David Marketing, suppliers of laboratory equipment, applied for a $3 000 loan from Microking Finance on 14 April 2011 and surrendered their title deeds as collateral.
Documents in possession of Sunday News indicate that Chris David paid back the money with interest before requesting for their title deeds.
It is understood that Microking Finance did not hand over the title deeds demanding that Chris David marketing pay an extra $600 to which they complied.
However, Microking Finance failed to produce the documents and informed Chris-David Marketing that their title deeds were missing prompting the latter to take remedial action to recover the documents.
Chris-David Marketing Company director, Mr David Mundandi confirmed that his company had instituted a lawsuit against Microking Finance and the matter was before Bulawayo High Court.
“I can confirm that we have instituted a lawsuit against Microking Finance for failing to produce our title deeds which we gave them as collateral when we applied for a loan. I am not able to disclose much since the matter is before the court.
“However, I have to acknowledge that I have been inconvenienced because our company has lost much of potential business after failing to produce the title deeds,” he said.
It is alleged that Microking Finance offered Mr Mundandi $3 000 so that the matter would be settled out of court.
However, Mr Mundandi turned down the offer.
AfrAsia corporate communications and public relations executive Ms Sekai Chitemerere confirmed that Microking Finance was facing a heavy lawsuit from Chris-David Marketing.
She, however, could not shed more light on the matter citing legal and professional reasons.
“We advise that AfrAsia Bank Zimbabwe Limited is not facing any lawsuit from Chris David Marketing. Instead, it is Microking Finance (Private) Limited which was served with summons.
“We confirm that the matter is still pending before the courts and therefore sub judice. As such, we are not at liberty to disclose any further details as per your request save to point out that Microking has taken measures to protect its legal rights by defending the claim,” said Ms Chitemerere.
Online Reporter