KASAMA member of parliament Kelvin Sampa has asked the Lusaka High Court to suspend proceedings and refer to arbitration the matter in which he has been sued by RL Extrem Investment Limited Company for failing to pay K2, 014, 300 for 4,426 safety boots which were supplied to him.
In this matter, RL Extrem Investment Limited Company which is involved in the supply of general goods in Zambia wants the court to compel Sampa to pay it the money owed to it with interest from the date of writ which is September 21, 2020 up to date of full payment, plus costs for the proceedings.
According to its statement of claim, RL Extrem Investment Limited stated that by contracts in writing dated November 2019, it supplied the defendant 226 security boots at K550 per pair totaling K124,300.
It stated that it also supplied Sampa 4,200 security and safety boots at K450 per pair totaling K1,890,000, altogether totalling K2,014,300.
RL Extrem Investment said that it was a term of the contract that upon delivery of the goods, Sampa would pay 50 per cent of the total amount.
“The plaintiff delivered the goods during the course of November 2019 which were duly received and acknowledged by the defendant. However, the defendant failed to pay the 50 per cent or any other sum as agreed,” the company said.
It stated that by demand letter dated June 23, 2020 addressed to Sampa’s advocates, the company through its advocates made its first written demand for the payment of K2, 014, 300.
“The defendant has either failed, refused or otherwise neglected to settle the claimed amount. The plaintiff is entitled to claim the said sum of K2,014,300 together with interests,” said RL Extrem Investment Limited Company.
But Sampa in his skeleton arguments in support of summons for stay of proceedings pending arbitration and to refer matter to arbitration said the claim brought before court emanates from the sale of goods agreement which was signed between himself and RL Extreme Investment in his capacity as national youth chairman of the Patriotic Front (PF).
He stated that the sale agreement in clause 10 had an agreed dispute resolution mechanism which was arbitration.
“The arbitration clause, clause 10 of the agreement, is clear on the mode of dispute resolution between the parties in the matter. Both parties intend to have their disputes resolved through arbitration and not through the courts,” Sampa claimed.
He indicated that on account of the agreed dispute resolution, the case was fit and proper for the court to refer the matter to arbitration.
Sampa further submitted that RL Extreme Investment would not be prejudiced in any way if his application was granted but conversely the interest of justice would be served.