After battling it out in the High Court of Namibia, Omhalanga Mills (Pty) Ltd and state owned, Agricultural Business Development Agency (Agribusdev) have reached a settlement agreement that will see the former cough up to N$2.95 million in maize grains debt that it had failed to pay.
The settlement agreement seen by Business Express compels Omhalanga to pay the entire debt it had been sued for of N$ 2 958 199.56.
The payment plan encompassed a payment of N$80 000 every month for the first eight months starting from 01 September 2023. Payment shall increase to N$200 000 as from month nine, payable on the first day of each subsequent month until the date of final payment of the settlement amount of N$2 958 199.56 and that of interest of 10% per annum calculated from 31 December 2018.
Payment shall be collated first interest, and then reduction on the capital amount of N$2 958 199.56, the agreement highlights.
“In the event the defendant failing to pay any of the amount on the due date, the full outstanding balance shall immediately become due, owing, and payable, and the defendant shall be entitled to immediately approach a competent Court and apply for judgment against the defendant on the basis of this agreement and further apply for a warrant of execution against the defendant,” a default agreement included in the settlement agreement reads.
PREVIOUSLY FAILED SETTLEMENT AGREEMENT
Agribusdev sold and delivered maize grains to Omhalanga Mills and Omhalanga Mills bought maize grains from Agribusdev.
In the court dispute that led to the settlement, Agribusdev claimed that Omhalanga Mills did not fully pay for the maize grains which they bought and as a result the parties had previous entered into another settlement agreement that ended in failure.
On or about the 12 of March 2020, Agribusdev and Omhalanga Mills entered into a written settlement agreement in respect of the outstanding amount of N$4.3 million, plus interest at the rate of 10% per annum calculated from 31 December 2018 to the date of final payment.
The terms and conditions of the Settlement Agreement were inter alia that: Omhalanga Mills would pay the Plaintiff the capital amount of N$ 4.3 million plus interest at the rate of 10% per annum calculated from 31 December 2018 to the date of final payment in the following order; payment of N$350 000 on the date of signature of the agreement; payment of N$200 000.00 on or before 31 March 2020; Payment of N$ 75 000 on or before Friday, 10 April 2020 and thereafter payment of N$ 75 000.00 each and every subsequent Friday until final payment of the settlement amount of N$ 4.3 million; interest at the rate of 10% per annum calculated from 31 December 2020 until date of final payment and N$200 000.00 for legal costs excluding costs ordered by the court on 19 February 2020.
In the event of the breach of the agreement by Omhalanga Mills, the full outstanding balance shall immediately become due, owing and payable, and the Agribusdev shall be entitled to immediately approach a competent Court and obtain judgement against Omhalanga Mills on the basis of the agreement and further apply for a warrant of execution against the Defendant.
“Omhalanga Mills breached the terms and conditions of the Settlement Agreement in that they made part payments of which the last payment was made on the 12 October 2020. Omhalanga Mills failed to repay the amount due in instalments set out by the agreement resulting in arrears in the amount of N$2, 958 199.56 plus interest at the rate of 10% per annum from 18 December 2018,” claimed and argued Agribusdev at court.
The result was the two parties entering into yet another settlement agreement.
COURT SEALS SETTLEMENT
In a court order that sealed the latest settlement agreement, the High Court said that having heard and having held a status hearing pursuant to rule 27 of the Rules of High Court of Namibia on 01 August 2023 and having considered the report and submissions by the parties or their legal practitioners in chambers in their absence, the Court order that the parties have settled the dispute between them and that the settlement agreement signed between the plaintiff and the defendant and filed of record is made an order of Court.
“The matter is regarded as finalised and is removed from the roll,” the Court ruled.