Warehouse ordered to release Govt cars

Fidelis Munyoro Chief Court Reporter
The High Court has ruled that a local firm operating a bonded warehouse has no right to confiscate third parties’ goods over outstanding storage costs.

Amcotts Trading (Private) Ltd, which runs a bonded warehouse, had confiscated two Toyota Hilux Revo 2.8L double cabs belonging to the State (Agriculture, Mechanisation and Irrigation Development Ministry), over non-payment of $49 000 in storage fees.

Justice Owen Tagu recently granted an application by Peppy Motors (Private) Ltd seeking an order against Amcotts and Blackbox Investments (Private) Ltd for the release of the two vehicles.

Peppy Motors had a contract with Government to facilitate the purchase and importation of 10 vehicles at a cost of $480 000.

The firm then brought in 43 vehicles to be kept at Amcotts bonded warehouse, but accumulated storage costs from the bonding of all the vehicles.

As at November last year, Amcotts was owed $49 038 in storage fees.

After Peppy Motors failed to pay the outstanding storage costs, Amcotts held on to two vehicles as lien over its debt.

But Justice Tagu refused to accept Amcotts’ defence of lien over storage costs that arose from bonding the 43 vehicles.

“The amount does not refer to the two vehicles in question alone,” said Justice Tagu.

To make matters worse, said the judge, while the bonding costs were to be paid by Peppy Motors, the vehicles that had been confiscated by Amcotts belonged to a third party, which is Government.

“The respondents (Amcotts and Blackbox), in my view, cannot exercise a lien over property of third parties,” said Justice Tagu.

The two vehicles are not owned by the applicant (Peppy Motors), but by the Government of Zimbabwe.”

Justice Tagu said Peppy Motors was a mere agent through which the two vehicles were imported and cleared into Zimbabwe. The two companies, he said, could only exercise a lien over Peppy Motors’ property.

Mawadze and Mujaya Legal Practitioners acted for Peppy Motors, while Coghlan, Welsh and Guest argued the matter for Amcotts and Blackbox Investments.