Debt col­lec­tor drags to­bacco com­pany to court

The Manica Post - - Local News - Love­more Kadzura Rusape Cor­re­spon­dent

A RUSAPE debt col­lec­tor has dragged to­bacco con­tract­ing com­pany Agri­trade Leaf To­bacco to court for al­legedly fail­ing to pay a col­lec­tion com­mis­sion of $7 900.

Mashayamvura En­ter­prises, which is be­ing rep­re­sented by Mr Tau­rai Khupe, of Khupe Law Cham­bers has filed a civil suit at Rusape Mag­is­trates’ Court.

Agri­trade, whose Rusape-based auc­tion floors were pre­ma­turely shut down early this year by the To­bacco In­dus­try and Mar­ket­ing Board (TIMB) over a num­ber of ir­reg­u­lar­i­ties, had by this week not re­sponded to the ap­pli­ca­tion.

The debt col­lect­ing com­pany ar­gued that it en­tered into an agree­ment with Agri­trade to re­cover $47 371 from its debtors for which Mashayamvura En­ter­prises was en­ti­tled to a 10 per­cent col­lec­tion com­mis­sion and $20 ad­min­is­tra­tion fee per debtor.

How­ever, the plain­tiff said Agri­trade re­fused to re­mit the com­mis­sion ar­gu­ing that the per­son who signed the agree­ment was no longer em­ployed by the com­pany.

“On June 5, 2018 Mashayamvura En­ter­prises en­tered into an agree­ment with Agri­trade Leaf To­bacco of re­cov­er­ing over­due debts from cred­i­tors on their var­i­ous ad­dresses.

“It was agreed that the plain­tiff shall charge 10 per­cent col­lec­tion com­mis­sion and $20 ad­mis­sion fee per ev­ery debtor from debt re­cov­ered.

“Plain­tiff and de­fen­dant agreed that the plain­tiff shall re­cover the out­stand­ing debt from the debtors within a month thus, with ef­fect from June 5, 2018 to July 5, 2018.

“The plain­tiff ef­fected ser­vices within three weeks from the June 5, 2018 on 154 debtors and re­cov­ered the sum of $47 371.47, which bulky of the money was de­posited di­rect to de­fen­dant’s ac­count as per agree­ment terms and con­di­tions.

“De­fen­dant breached the agree­ment by fail­ing to pay the money as per terms and con­di­tions of the agree­ment to plain­tiff. The de­fen­dant was sup­posed to pay the to­tal sum of $7 638.68, which in­cludes 10 per­cent col­lec­tion com­mis­sion and $20 ad­min­is­tra­tion fee per debtor as in­di­cated on the min­utes of a meet­ing held on June 13, 2018, to plain­tiff for all the 154 debtors who paid the money af­ter ser­vice had been ef­fected.

“Thus, in­stead of de­fen­dant set­tling the to­tal bal­ance of $7 638, went on to state that the money can­not be dis­bursed to plain­tiff be­cause its rep­re­sen­ta­tive then one Mr Kondo, who signed the con­tract on be­half of de­fen­dant, is no longer em­ployed by de­fen­dant,” ar­gued Mr Khupe.

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