adminUS$2,7 million debt.
Mr Shah claims he rescued Mr Chidawu – who is a shareholder in several companies in Zimbabwe and Africa – with a US$3 million loan when he wanted to carry out an undisclosed transaction. But Mr
Shah says he was now having problems getting his money back. He claims Mr Chidawu acknowledged the debt and only paid US$300 000, leaving a balance of US$2,7 million.
According to summons filed at the High Court by Mr Shah’s lawyers Artherstone and Cook, Mr Chidawu failed to pay back the money despite demand.
On February 10 this year, Mr Shah argues, Mr Chidawu acknowledged his indebtedness.
In terms of the agreement allegedly entered by the parties, Mr Chidawu undertook to repay the loan by February 20 this year and to pay 18 percent interest per annum in the event that he failed to pay the debt within the agreed period.
He only paid US$300 000 on March 25 leaving a balance of US$2,7 million.
It is stated in the summons that Danoct Investments, Dannov Investments, Broadway Investments and Kumul Holdings bound themselves as surety and co-principal debtors for the due and punctual payment of the loan.
The four firms were also cited as defendants in the summons.
Mr Chidawu, in his plea, denied ever signing an acknowledgement of debt.
He said the said agreement was void for illegality.
Mr Chidawu denied ever borrowing US$3 million from Mr Shah although he admits to paying the US$300 000 for undisclosed reasons.
He contends that the said surety agreements were also void for illegality.
Honey and Blanckenberg are representing Mr Chidawu.
The matter is yet to be set down for pre-trial conference at the High Court.
Online Reporter