NRZ Pension Fund sues Telecel over $10 000 rental arrears

Telecel Zimbabwe (PVT) Limited has been taken to court by the national Railways of Zimbabwe Contributory Pension Fund over $10 000 debt owed in unpaid rentals for the property the company is renting in Bulawayo.

NRZ Contributory Pension Fund filed summons at the Bulawayo High Court citing Telecel Zimbabwe as the defendant.

"The plaintiff's claim against the defendant is for eviction and monies due in respect of rentals and operating costs for premises leased by plaintiff to defendant in respect of its occupancy of Base Station at Pioneer House Fife Street and 8th Avenue, Bulawayo in terms of a lease agreement between the parties entered into in June 1998 rentals and operations costs remain outstanding as more fully set out to the particulars of claim hereto," reads the summons in part.

NRZ Pension Fund said wherefore plaintiff prays that judgment be granted in its favour against defendant for the following, confirmation of the cancellation of the lease agreement between plaintiff and defendant, an order directing defendant's eviction from Base Station Pioneer House Fife Street and 8th Avenue Bulawayo and all persons claiming title or occupation through it.

"An order that defendant pay the following sums, US$10 232, 78 in respect to rentals as at October 2018, US$1 572, 63 in respect of operating costs as at October 2018 and interest on the said outstanding sum at the prescribed rate from date of summons to date of full and final payment, holdover damages equivalent to the monthly rental of US$1 391, 50 inclusive of VAT thereon and operational costs incurred from November 1 2018 to date of eviction and costs of suit," the NRZ Pensions Fund submitted.

NRZ Pension Fund submitted that on July 2 1998 it and Telecel Zimbabwe entered into a lease agreement whereby the pension fund leased the Telecel Zimbabwe Base Station  on condition that rentals would be paid monthly at a rate of US$1 391, 50. The rent was payable without any deductions, monthly in advance on the first day of each month at the offices of Knight Frank Zimbabwe in Bulawayo.

"It is an agreed term of the lease that in the event of rent or other payment for any review or renewal period not being agreed or determined before the specified date  the talent will continue paying rent at the monthly rate paid immediately prior to such review or renewal period," NRZ pension Fund said.

The agreement states that Telecel was enjoined to pay the VAT on the rental and also pay costs of operating as determined by NRZ pension's fund.

"If plaintiff cancelled the lease, the defendant disputed plaintiff's rights and remained in occupation of the premises, then defendant would be obliged to pay the rental and all other amounts due to plaintiff on the due dates. The premises were let to the defendant for use as a cellular telecommunications cell site only and for no other purpose without the written consent of the plaintiff," NRZ pension fund said.

The agreement states that in the vent of legal action being taken the defendant would be obliged to pay the legal costs of such action.

The Telecel was also enjoined to pay interest on all arrears or rent and other amount due to landlord and was precluded from subletting the premises.

NRZ pension fund submitted that in breach of the lease Telecel is still in occupation of the premises and it has failed to pay  the agreed rentals due and operating costs of US$11 805,41 which it prayed for its payment and eviction of the company.