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The following properties were declared executable:
l Stand 3434 Harare Township measuring 4 694 square metres
l Lot 4 of GA Hellensvale measuring 2, 0332 hectares
l Stand 6 Tara, Goromonzi measuring 6, 3314 hectares
l Stand 644 Ruwa measuring 2 000 square metres.
Justice Bhunu granted the order following an unopposed chamber application by RMB’s lawyers, Danzinger and Partners.
“Judgment is hereby entered against the defendants jointly and severally the one paying the others to be absolved in the sum of $1 274 167,85 together with interest at the rate of 21 percent per annum from May 1 2012 to date of payment in full . . .” read part of the order.
The other four companies that were cited as defendants together with Dr Gono and Lunar Chickens are Froglett Investments, Kimira Bonsai Nursery, Hanrob Investments and Wykeham Investments.
The facts of the matter were that on 8 December 2010, RMB extended a credit facility of $1 million to Lunar Chickens.
In the same deal, Dr Gono and the other four firms stood as surety and co-principal debtors for the due fulfillment of all the obligations of Lunar Chickens.
Froglett passed a surety bond of Stand Number 3434 Harare Township in favour of RMB while Kimira Bonsai Nursery bonded the Hellensvale property.
Hanrob Investments offered Stand Number 6 Tara Township while Wykeham bonded Stand 644 Ruwa.
In breach of the agreement, Lunar Chickens has failed to settle the loan under the credit facility that expired on 31 May 2011.
The balance outstanding on the loan stood at $1 274 167,85 as at April 2012.
The capital amount is $998 996,03 and interest by April this year was calculated at $275 161,82. Bank charges were only $10.
Despite demand, the six defendants have refused to settle the said amount prompting RMB to file summons at the High Court on 1 June this year.
The summons were duly served on the defendants on 13 June this year and the deputy sheriff produced a return of service document that was filed at the High Court.
Lunar Chickens, Dr Gono and the four other firms did not respond to the claim until they were automatically barred in terms of the rules of the High Court. RMB then filed a chamber application seeking a default judgment in terms of the summons issued.
Justice Bhunu granted the chamber application last week on Wednesday.
RMB is on record claiming that Lunar Chickens owed it $1 million while the central bank itself owes it $8 million. In another claim at the High Court RMB indicated that if it got back the $9 million owed by the two entities, its financial woes would end.
Online Reporter