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Mashudu Netsianda, Senior Court Reporter
A BULAWAYO engineering company has dragged a Masvingo mining firm to court for hiring its excavator and failing to settle a debt of more than $200,000 for the service.
According to court papers filed at the Bulawayo High Court last week, Trastar Investments was cited as the respondent while Leomach Engineering Pvt) Ltd is the applicant in the matter.
Kenneth Chirashi, managing director for Leomach Engineering, in his founding affidavit said their application sought an order compelling Trastar Investments to pay $209, 543, 15, which is the outstanding amount for hiring its excavators at Marange diamond fields.
“On August 2, 2012, Leomach Engineering entered into an agreement with Trastar Investments to hire our excavators.
In terms of the agreement, the respondent was obliged to settle all invoices for hiring fees raised by our company within seven days from the date of the invoice,” said Chirashi.
According to the terms of the agreement, Trastar Investments was also supposed to pay an interest of 10 percent per annum in respect of late payments.
“Leomach Engineering raised invoices amounting to $380,397.99 and Trastar Investments only managed to pay $170, 854,84 leaving a balance of $209,543.15 in breach of the parties agreement,” said Chirashi.
He said despite acknowledging the debt, Trastar Investments has failed, neglected or refused to settle the outstanding amount. The last invoice was issued on March 25, 2013. Chirashi said his company has since cancelled the agreement following a breach of the terms of the contract by Trastar Investments.
He said Trastar Investments has for the past two years been making inconsistent payments resulting in the debt accumulating due to interests. Leomach Engineering is demanding $209,543.15 from the Masvingo mining firm with an interest rate of 10 percent per annum calculated from March 2013 to the date of final settlement.
Trastar Investments has not yet filed opposing papers.
Online Reporter