Petrotrade sues NRZ over fuel

By | March 6, 2017

GOVERNMENT fuel supplier Petrotrade (Private) Limited, has dragged the National Railways of Zimbabwe (NRZ), to court in a bid to recover $425 299 after efforts for an out-of-court settlement, failed.

Source: Petrotrade sues NRZ over fuel – NewsDay Zimbabwe March 6, 2017

BY CHARLES LAITON

In May last year, Petrotrade issued summons against NRZ demanding settlement of the debt followed by a court application for a summary judgment in July of the same year.

In February this year, however, the two parastatals signed a deed of settlement after eventually agreeing to settle the matter out of court.

Part of the signed agreement read: “The total amount outstanding in the sum of $425 299 shall be paid in 17 equal monthly instalments of $25 000 each with the first instalment being due on or before December 31, 2017.

“The first instalment due on December 31, 2016 in the sum of $25 000 shall be paid as follows; the sum of $8 500 shall be paid into the plaintiff’s (Petrotrade) legal practitioners’ account and the sum of $16 500 shall be paid directly into the plaintiff’s bank account whose details are specified. The remaining balance in the sum of $400 299 shall be paid in monthly instalment of $25 000 on or before the last day of each and every subsequent month directly to plaintiff’s bank account.”

According to Petrotrade, sometime in 2014, it entered into an agreement of sale of fuel products on credit with the NRZ and the terms of the agreement were to the effect that Petrotrade would supply fuel products to NRZ which would be paid within 14 days.

In compliance with the agreement, and during the period extending from October 23 to 24, 2014, Petrotrade supplied NRZ with fuel products valued at $387 720, but NRZ reportedly failed to pay.

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