The Spar Group Limited has lodged an application with the High Court in which it claims that Insignia Retail (Pty) Limited trading as Rehoboth Build It has defaulted in their supply agreement and is now indebted to the Group to the tune of N$92 million which it must pay.
The Group has thus sued Build It together with Mekondjo Kweenda, Ambrosius Mulogweni, Tarah Natangwe Shaanika and Ndinelao Kweenda which it says they entered into written deeds of suretyship in favour of Plaintiff.
Insignia this week notified the Court that it intends to defend the matter through Sisa Namandje.
Documents seen by Business Express show that on or about 25 October 2017, Spar duly represented by Richard Wiehahn, and Insignia, represented by Kweenda, concluded a written credit agreement for the supply of goods in trade.
Spar would supply Rehoboth Built It with goods in trade and sundry items falling into three categories, being warehouse transactions, drop shipment transactions, other transactions in accordance with the Spar’s current prices and in terms of orders received from time to time at the Rehoboth Build It’s special instance and request. Spar would invoice Insignia for those items in the form of weekly statements.
In their agreement, Business Express understands that payment would become due within 19 days from the date of the weekly statement, in the case of warehouse transactions; within 48 days from the date of the weekly statement, in the case of drop shipment transactions and upon weekly statement in respect of all other transactions.
The agreement further states that in the event of failure by the Insignia (Rehoboth Build It) to timeously pay any money to Spar on due date, the full amount owing by Insignia to Spar, from whatever cause, would become immediately due and payable. If Insignia failed to pay any amount due Spar on due date, it was liable to pay interest to Spar on all overdue amounts at 5% above the prime overdraft lending rate charged by Spar’s principal banker from time to time, from due date until date of payment.
“The Plaintiff complied with its obligations under the supply agreement and supplied to the First Defendant, at the latter’s special instance and request, stock in trade and sundry items, at its current prices. The total indebted amount now due and payable under the supply agreement, by the First Defendant to the Plaintiff, for the supply of the stock in trade, sundry items and accrued interest, is the sum of N$92,660,223.32 (ninety two million six hundred and sixty thousand two hundred and twenty three Namibian dollars and thirty two cents) which is proved (prima facie), by way of the annexed certificate marked “SWC2” signed by Claudia Michel, a divisional director of the Plaintiff, on the 9th day of May 2022, in terms of clause 6 of the standard terms of sale of Plaintiff incorporated into the supply agreement,” argues the Spar Group in documents filed with the High Court recently.
In further emphasising the claim, Spar noted that on or about 10 February 2022, and at Windhoek, Namibia the first defendant, represented by second defendant, acknowledged the first defendant’s indebtedness to the Plaintiff, in writing, in the sum of N$87,067,246.63 as at 10 February 2022.
“The aforepleaded amount, to date of summons, accrued to N$92,660,223,32 which amount remains due, owing and payable to the plaintiff. Despite demand, the Defendants have failed, refused and/or neglected to make payment to the Plaintiff,” further states the Spar Group in their application.
Essentially therefore, the Group claims as against the Defendants, jointly and severally the one paying the other to be absolved as payment of the sum N$92,660,223.32, interest thereon at the contractual rate of 5% above the prime overdraft lending rate of plaintiff’s principal banker, First National Bank from 30 April 2022 to date of final payment thereof; costs of suit on the scale of attorney and client and further and/or alternative relief.
Last week, the Court noted that having considered the case plan and written submissions by the parties or their legal practitioners, in chambers and in absence of the parties, it is recorded that the plaintiff intends to apply for summary judgment.
Further stating: “It is ordered that the plaintiff shall comply with rule 32(9) and (10) on or before 15 July 2022, the plaintiff shall file its application for summary judgment on or before 22 July 2022, the defendants shall file notice of intention to oppose, if any, and answering affidavit on or before 05 August 2022, the case is postponed to 17 August 2022 at 15:15 for Status hearing and the parties shall file joint status report on or before 10 August 2022.”