ZETDC sues firm

company for failing to pay US$39 000 for a transformer it rented from the power utility for five months.
ZETDC is claiming a further US$12 000 from Steelmakers Zimbabwe (Pvt) Ltd for installing and servicing a 22MVA transformer at the firm’s plant in Redcliff.
In an application filled at the High Court recently, ZETDC stated that on July 31, 2008 it entered a lease agreement in which Steelmakers hired a Gec Alston electric transformer.
ZETDC said they agreed that Steelmakers would pay monthly rentals of US$6 500.
“The defendant is in breach of the lease agreement in that they have failed to pay rentals and they are in arrears in the sum of US$39 786,” ZETDC submitted.
The power utility said the arrears were accrued between February 2009 and July 2009.
ZETDC is also claiming US$12 043,95 it says Steelmakers owes for a decommissioned 30MVA transformer.
The utility says it also installed a 22MVA transformer.
To date, ZETDC says Steelmakers has only paid US$4 490 leaving it with a debt of US$47 340,24.
ZETDC claims that despite verbal and written demand, Steelmakers Zim has refused or neglected to settle the debt. In its opposing papers, Steelmakers denied being in arrears.
“The defendant will aver that it was absolved from paying rentals by Zesa, which failed to deliver the same transformer subject of the lease agreement.
“The defendant was not obliged to pay rentals for the period February 2009 to July 2009.”
The company says it paid in full the invoice in respect of 30MVA transformer and did not understand the basis of ZETDC’s claim.
“We pray for application to be dismissed with costs,” Steelmakers says.
According to pre-trial conference minutes, the court will determine whether or not Steelmakers is in debt to ZETDC. Justice Susan Mavangira will hear the case.
Muza and Nyapadi are representing ZETDC while Mkushi, Foroma and Maupa are appearing for Steelmakers. – CR.