News / National
Catholic bishops bid to pay US$188K in ZiG hits a snag
22 Oct 2024 at 08:04hrs | Views
The High Court of Zimbabwe has dismissed the application for a declaratur seeking a stay of execution regarding a US$188,000 payment order against Stella Mundi, an agricultural company owned by the Zimbabwe Catholic Bishops Conference. The ruling comes after Stella Mundi failed to comply with a court order to pay the local company Murimi Two Four Seven (Pvt) Ltd.
Stella Mundi had approached the court urgently, asking for the stay of execution against an original order that required it to pay Murimi Two Four Seven approximately US$187,954.42 in five installments by December 31. The alternative option was to pay the equivalent of ZWL$2,588,439 before August 15.
However, after Stella Mundi defaulted on the initial payment due on July 31, Murimi Two Four Seven issued a notice for the seizure of Stella Mundi's property via the Sheriff of Zimbabwe. In its defense, Murimi Two Four Seven argued that Stella Mundi's application was an attempt to evade the existing court order and that the legal effect of the original judgment was binding.
Murimi Two Four Seven, an agro-technology company providing services such as farm equipment hire and agricultural advisory, had initially been engaged by Stella Mundi to perform various agricultural tasks at Driefontein Mission Farm in Mvuma. Following a disagreement, the matter escalated to court, where a consent order was reached, reducing the claim to US$187,754.42.
Despite this order, Stella Mundi breached the terms by failing to make the first installment payment. When it attempted to make payments in ZWL$ instead of US dollars directly into Murimi's account, Murimi Two Four Seven maintained that such payments did not fulfill the terms of the agreement, especially considering the significant devaluation of the local currency.
Justice Joseph Chilimbe, in his ruling, emphasized that the original agreement stipulated payments to be made in US dollars, stating, "The judgment debt was born out of a contract being the deed of settlement. Under that pact, the parties agreed that the obligation would be met in US dollars." He further clarified that while ZWL$ is recognized as legal tender, the contractual terms specifically called for payment in US dollars.
Ultimately, Justice Chilimbe ruled that there were insufficient grounds to grant the application for a stay of execution, concluding that Stella Mundi's arguments did not extend beyond mere differences of opinion regarding the contractual terms. The application was dismissed with costs, reinforcing the need for adherence to contractual obligations in financial disputes.
This ruling highlights the complexities involved in contractual disputes, particularly when it comes to the use of local currency amid ongoing economic challenges in Zimbabwe.
Stella Mundi had approached the court urgently, asking for the stay of execution against an original order that required it to pay Murimi Two Four Seven approximately US$187,954.42 in five installments by December 31. The alternative option was to pay the equivalent of ZWL$2,588,439 before August 15.
However, after Stella Mundi defaulted on the initial payment due on July 31, Murimi Two Four Seven issued a notice for the seizure of Stella Mundi's property via the Sheriff of Zimbabwe. In its defense, Murimi Two Four Seven argued that Stella Mundi's application was an attempt to evade the existing court order and that the legal effect of the original judgment was binding.
Murimi Two Four Seven, an agro-technology company providing services such as farm equipment hire and agricultural advisory, had initially been engaged by Stella Mundi to perform various agricultural tasks at Driefontein Mission Farm in Mvuma. Following a disagreement, the matter escalated to court, where a consent order was reached, reducing the claim to US$187,754.42.
Despite this order, Stella Mundi breached the terms by failing to make the first installment payment. When it attempted to make payments in ZWL$ instead of US dollars directly into Murimi's account, Murimi Two Four Seven maintained that such payments did not fulfill the terms of the agreement, especially considering the significant devaluation of the local currency.
Justice Joseph Chilimbe, in his ruling, emphasized that the original agreement stipulated payments to be made in US dollars, stating, "The judgment debt was born out of a contract being the deed of settlement. Under that pact, the parties agreed that the obligation would be met in US dollars." He further clarified that while ZWL$ is recognized as legal tender, the contractual terms specifically called for payment in US dollars.
Ultimately, Justice Chilimbe ruled that there were insufficient grounds to grant the application for a stay of execution, concluding that Stella Mundi's arguments did not extend beyond mere differences of opinion regarding the contractual terms. The application was dismissed with costs, reinforcing the need for adherence to contractual obligations in financial disputes.
This ruling highlights the complexities involved in contractual disputes, particularly when it comes to the use of local currency amid ongoing economic challenges in Zimbabwe.
Source - newsday
