Farmers Nest urges court to dismiss law suit
By Thandizo Banda
FARMERS Nest Construction Company Limited, a company owned by Methew Mohan, has denied owing Zambia China Mulungushi Textiles Limited (ZCMT) K700,000 in outstanding balance for undelivered materials and unpaid rentals.
This is a case in which ZCMT has sued Framers Nest Construction Limited in the Kabwe magistrates court demanding the outstanding balance.
ZCMT, through lawyers from Mosha and Company, state despite being paid K1.5 million, Farmers Nest Construction Limited only delivered building materials worth K52,000.
ZCMT submitted that regardless of the company agreeing to refund the full amount of the balance, it has only refunded K900,000, leaving an outstanding balance of K600,000.
The undelivered materials were meant for the construction of a fence at ZCMT premises in Kabwe, which is earmarked for reopening this year.
In its defence, however, Farmers Nest Construction Limited dismisses the claim, arguing that the ZCMT had issued only a single Local Purchase Order (LPO).
Farmers Nest Construction Limited said the agreement between the parties provided that materials would be supplied ex-stock on order.
It has accused Zambia China Textiles of failure to issue subsequent LPO’s after the initial K40,000 LPO.
Farmers Nest Construction contends that ZCMT’s neglect triggered the delay in supplying the materials.
It also states the forum with the jurisdiction to determine or hear the matter is an arbitral tribunal and not the magistrates’ court.
Farmers Nest Construction denies having breached or failed to honour the agreement.
It is urging the court to dismiss the lawsuit for forum shopping and want of jurisdiction.
