adminMathew Masinge
SEED CO Pvt Ltd has been awarded US$1 million in damages by the High Court after one of its seed growers, Credcorp Investments (PVT) Ltd, failed to fulfil a contract.
Seed Co contracted Credcorp to produce soya beans, sugar beans and sorghum during the 2018/2019 agricultural season.
The crops were grown on four farms operated by Credcorp in Sanyati, Impalavale, Doreen’s Pride and Antelope.
Credcorp only delivered 44.7 metric tonnes of sugar bean seed and sold the rest to third parties, in breach of the contract.
Seed Co claimed it suffered damages of US$1 517 465 before the claim was reduced to US$1 014 483.
Credcorp has been ordered to pay the damages plus costs of the lawsuit.
In his finding, High Court judge, Justice Jacob Mafusire, said Seed Co had every right to make the claim.
“There has not been a much-informed challenge on the quantum of Seed Co’s claim.
“Credcorp’s plea was just a bare denial. More importantly, neither in the plea nor in evidence has the company disclosed the price at which it sold the seed in contention.
“I find no irregularity in Seed Co expressing its loss in United States dollars if that was the currency of the invoices, which it was,” ruled Justice Mafusire.
“… in line with the previous dealings between the parties, Credcorp shall have the option to pay in the local currency.
“In light of the above, Credcorp is ordered to pay US$1 014 483 plus costs of suit,” reads the ruling.
Online Reporter