The Midlands State University (MSU) has won a court order compelling a local furniture manufacturing firm, R Mc Diarmid (Pvt) Ltd, to refund $242 900 after it failed to supply 5 000 chairs to the institution.
The court order by High Court judge Justice David Mangota was granted on July 18, 2018 following an application for a summary judgment by the university.
“Whereupon, after reading documents filed of record and hearing counsel, it is ordered that: the application for summary judgment be and is hereby granted; the respondent (R. Mc Diarmid (Pvt) Ltd) be and is hereby ordered to pay the sum of $242 900, interest thereon at the prescribed rate and cost of suit,” Justice Mangota said.
In the litigation, the institution had also cited Derrick Mc Diarmid, Kenneth Mc Diarmid and Charles Cannings as co-defendants after the latter acted as directors of the firm during signing of the agreement with MSU.
The university is said to have issued summons on October 13 last year accusing R Mc Diarmid and its director of having “negligently and recklessly conducted their business”, leading to their failure to fulfil an agreement entered between the parties.
The university said at all material times, Derrick, Kenneth and Charles were directors of R Mc Diarmid.
“They conducted the business affairs of the first defendant (R Mc Diarmid (Pvt) Ltd) negligently and recklessly to the extent that the company was unable to pay amounts owed in terms of the agreement with the plaintiff (MSU),” the college said.
According to the MSU, sometime in October 2016, it entered into an agreement in terms of which R Mc Diarmid (Pvt) Ltd was to supply, deliver and install 5 000 auditorium chairs at a negotiated sum of $461 250.
“The material condition of the agreement were inter alia that, the first defendant would supply, deliver and install 5 000 chairs in the multi-purpose hall. The plaintiff would pay a commitment deposit of 60% in the sum of $276 750 to the first defendant. The first defendant would deliver the chairs within five weeks from the date of deposit payment,” MSU said.
“In furtherance of the agreement between the parties, the plaintiff duly paid the commitment deposit to the first defendant on or about October 7, 2016. The first defendant, however, in December 2016 breached the agreement by failing/neglecting to supply, deliver and install the chairs within the five weeks from the date of payment of the deposit as agreed.”
The university further said, at the request of R. Mc Diarmid (Pvt) Ltd it withheld $33 849 which was payments due to the latter in terms of other agreements, thereby reducing the deposit amount due and payable to the company to $242 900.
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