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Kobil sues Chimsoro Farms

KOBIL Zambia Limited has sued Mukushi farmer Costain Chilala’s Chimsoro Farms Limited in the Lusaka High Court for failing to pay over K330,000 for automotive diesel supplied to it.
In a statement of claim filed in the principal registry, Kobil stated that Chimsoro Farms opened an account with them for the supply of fuel to the farm and undertook to pay for supplied fuel within 30 days and without causing any inconvenience.
The plaintiffs stated that it was the usual practice of Chimsoro that it would request to be supplied with fuel which would be settled later, explaining that the kind of account maintained by the defendant was such that the debt was accumulative but would not take longer than a month to settle.

Kobil stated that at Chimsoro’ s own instance and request, it supplied them 35,000 litres of automotive diesel worth K363,877.50 and it was received by the defendant on June 16, 2017 under invoice no. 65052468.

The plaintiffs stated that Chimsoro issued three cheques dated June 15, 2017, whose narrations were K25,000 receipted under receipt no. 690002103; K5,000 receipted under receipt no. 6900037257, and ; K45,800 receipted under receipt no. 690000221.

Kobil stated that the amounts on some of the cheques liquidated part of the debt, reducing Chimsoro’s indebtedness to K330,981.90.
The plaintiffs stated that the cheque with K45,800 though receipted never cleared.
The plaintiffs stated that Chimsoro later issued cheques to clear the invoice upon falling due after 30 days as per trading terms but they were unable to retrieve the funds endorsed on the cheque owing to the banking regulation that requires all amounts above K25,000 to be transferred electronically.
Kobil stated that it informed Chimsoro of the state of affairs but they were assured that an electronic transfer would be executed within a week.
The plaintiffs stated that despite Chimsoro assuring that they would transfer the money electronically, the defendant did not do so.
Kobil stated that Chimsoro notwithstanding the reminders and demands have failed to pay K330,981.90
Kobil claimed that notwithstanding reminders and demands it made, and in particular, a final demand letter dated November 17, 2017, Chimsoro has failed to pay the sum of K330,981.90.
The plaintiffs stated that they have greatly being inconvenienced and the business has suffered loss.
Kobil is therefore, demanding damages for breach of agreement, inconvenience and any other order the court might deem fit and interest on the K330,981.99.

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