Mbada fails to settle $120k debt

Bulawayo Bureau
A Bulawayo mechanical engineering company, Eagletron International (Pvt) Ltd, has filed a lawsuit against Mbada Diamonds for failing to settle a $120 000 debt accrued last year over a period of six months.

The debt emanates from goods which the mining company bought from the engineering firm on credit.

The goods included shafts for dough mixers, channel and angle irons and idler rollers.

Eagletron International (Pvt) Ltd t/a Pump and Steel Supplies through its lawyers Dube Tachiona and Tsvangirai, accused the diamond mining firm of breaching the terms of their agreement by failing to settle the money within 30 days.

“Sometime between May and September 2014, the defendant owed plaintiff a balance of $105 444, 52 for goods which had been bought previously on credit.

“On May 14, 2014, defendant paid $7 000; $26 407, on June 23, 2014 and $15 000 on September 1, 2014. Despite demanding that Mbada Diamonds pay a total sum of $120 017,77, defendant has refused, neglected and failed to pay prompting plaintiff to approach this honourable court,” said the plaintiff’s lawyers.

Eagletron International is seeking an order compelling Mbada Diamonds to pay $120 017,77 with interest at a prescribed bank rate per annum calculated from the date of summons to the date of full and final payment and the cost of suit at attorney-client scale.

In opposing papers, Mbada Diamonds through its lawyers, Mutamangira and Associates, disputed the amount, arguing that Eagletron International had inflated figures.

“The prices that have been charged by the plaintiff were excessive and consequently in violation of the provisions of the Consumer Contracts Act. The rates were very exorbitant and we challenge plaintiff to prove the fairness of the prices.

“Defendant also disputes the correctness of the amount indicated on the summons as our reconciliations are in variance with what is claimed by plaintiff,” argued Mbada Diamonds.

Mbada Diamonds also indicated in its opposing papers that it needed more time to raise the money following the seizure of its diamonds in Antwerp, Belgium.