Business / Companies
Madlala Tours sued over bad loan
11 Jul 2016 at 07:07hrs | Views
MADLALA Tours and Travel has been sued by the National Merchant Bank (NMB) Limited for more than $88,000 after the company allegedly failed to repay a loan.
According to the summons issued at the Bulawayo High Court last week, Madlala Tours and travel, Lois Mguni in her capacity as the company's managing director and executor of her late husband Agrippa's estate and the Master of the High Court were cited as the defendants.
Summons filed by the bank through their lawyers Danziger and Partners Legal Practitioners read: "On 1 June 2010, the plaintiff extended certain banking facilities to the first defendant (Madlala Tours and Travel), which were not to exceed $100,000 at any given time. It was a composite multi-purpose facility comprising revolving acceptance credits, overdraft, guarantees and call loans."
The call loan attracted 48 percent interest per annum as per the agreement payable on maturity of the loan.
For the overdraft, the interest rate was pegged at 12 percent per annum on condition that the company deposited an average of $10,000 per day while guarantees attracted a commission of six percent per six months.
According to court papers, Mguni offered a piece of land in Windsor Park in Trenance, Bulawayo as the security guarantees. The land is registered under the name of her late husband's estate.
Madlala Tours and Travel failed to settle the loan on 30 June 2011, which was the expiry date.
"The facility was set to expire on 30 June 2011 but in the event of default the whole amount becomes immediately due and payable with the defendants liable to pay costs of recovery at an attorney-client scale together with collection commission," read the summons.
In the court papers, NMB indicated that despite demanding the payment, the defendants failed to pay.
NMB is claiming $88,670 from the defendants and in the event of failure by Madlala Tours and Travel to repay the loan, the bank seeks an order declaring Lot 5 Windsor Park of Subdivision 4 of Trenance specially executable.
Madlala Tours and Travel has not yet filed papers in response to the lawsuit.
The late Mr Mguni who ran his business empire under the Madlala Tours and Lodges brand, died in July 2012.
He owned a fleet of commuter omnibuses in the city and a lodge in Richmond and was also popular for the role he played in a radio drama series Sakhelene Zinini in which he played the character of a con artiste.
According to the summons issued at the Bulawayo High Court last week, Madlala Tours and travel, Lois Mguni in her capacity as the company's managing director and executor of her late husband Agrippa's estate and the Master of the High Court were cited as the defendants.
Summons filed by the bank through their lawyers Danziger and Partners Legal Practitioners read: "On 1 June 2010, the plaintiff extended certain banking facilities to the first defendant (Madlala Tours and Travel), which were not to exceed $100,000 at any given time. It was a composite multi-purpose facility comprising revolving acceptance credits, overdraft, guarantees and call loans."
The call loan attracted 48 percent interest per annum as per the agreement payable on maturity of the loan.
For the overdraft, the interest rate was pegged at 12 percent per annum on condition that the company deposited an average of $10,000 per day while guarantees attracted a commission of six percent per six months.
According to court papers, Mguni offered a piece of land in Windsor Park in Trenance, Bulawayo as the security guarantees. The land is registered under the name of her late husband's estate.
Madlala Tours and Travel failed to settle the loan on 30 June 2011, which was the expiry date.
"The facility was set to expire on 30 June 2011 but in the event of default the whole amount becomes immediately due and payable with the defendants liable to pay costs of recovery at an attorney-client scale together with collection commission," read the summons.
In the court papers, NMB indicated that despite demanding the payment, the defendants failed to pay.
NMB is claiming $88,670 from the defendants and in the event of failure by Madlala Tours and Travel to repay the loan, the bank seeks an order declaring Lot 5 Windsor Park of Subdivision 4 of Trenance specially executable.
Madlala Tours and Travel has not yet filed papers in response to the lawsuit.
The late Mr Mguni who ran his business empire under the Madlala Tours and Lodges brand, died in July 2012.
He owned a fleet of commuter omnibuses in the city and a lodge in Richmond and was also popular for the role he played in a radio drama series Sakhelene Zinini in which he played the character of a con artiste.
Source - chronicle
