NMB Bank intends to attach Zimbabwe Cricket (ZC)’s property after it failed to service a loan amounting to over $2,5 million advanced to the cricket body sometime in 2012.
CHARLES LAITON
NMB Bank has since obtained a writ of execution after obtaining a summary judgement at the High Court where the matter was heard before Justice Amie Tsanga in August 2015.
In her order, Justice Tsanga ruled: “1st respondent (ZC) pays to applicant (NMB) the sum of $2 577 775 together with interest thereon at the rate of 24% per annum from the 6th of January 2015 such interest calculated monthly and in advance on the said capital and on the said sum and capitalised to date of payment in full.
“1st respondent pays applicant’s legal costs on a legal practitioner and client scale and all collection commission due to the applicant’s legal practitioners.”
The judge also ordered that: “the property known as a certain piece of land situated in the District of Salisbury called stand 285 Willowvale Township of stand 460 Willowvale Township measuring 9 759 square metres registered in the name of the 2nd respondent under deed of transfer number 802/2011 be and is hereby declared executable in the recovery of $2 000 000 being part of the amount described in paragraph 1 herein as due to the applicant.”
After obtaining the judgement in its favour, the bank proceeded to apply for a writ of execution against the ZC’s property and it was granted on September 1 last year.
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The lawsuit against the country’s cricket body came about when, in January 2012, it approached the NMB seeking a loan facility and was granted $2 million.
The terms of the loan agreement, according to the bank, provided among other things that the ZC would pay interest at the rate of 24% per annum from the date the loan was advanced.
It was, however, not made clear in court papers what the money was used for by the country’s cricket body.
“1st respondent would pay the capital debt and interest owing on or before October 31, 2012. The expiry date for the facility was extended by agreement to June 30, 2013,” the bank’s recovering manager Aylwin Chinyoka said in his affidavit attached to the court papers.
“In breach of the terms and conditions of the loan agreement, 1st respondent failed to pay the full amount due in terms of the facility agreement. As a direct consequences of the 1st respondent’s failure to pay the amount due, plaintiff demanded payment of the full outstanding amount.”
The bank is now set to approach the Sheriff of the High Court to have the property attached and sold.
