BLANTYRE (Malawi NewsNow) –State produce trader Agricultural Development and Marketing Corporation (Admarc) has been sued for breach of contract which also allegedly led to loss of business for the Zambian private company Kaloswe Commuter and Courier Limited.
The company through its lawyer Mwansa Mukoloba has applied to the High Court in Zambia to amend writ of summons and claims and add Admarc to a case in which Kaloswe sued Zambia Cooperation Federation (ZCF) in October last year.
The lawsuit, among others, seeks an injunction restraining ZCF from spending $35.4 million from PTA Bank which was paid in its account number 0003203000439 for the purchase of 100,000 metric tonnes of maize by Admarc.
Kaloswe is also demanding from the two a payment of $13,000,000 (K9.6 billion) being the difference between the $34.5 milion paid by the PTA Bank and the contract sum of $21,500,000.
Mukoloba also said that Kaloswe is suing for general damages and special damages worth $3million (K2.2 billion) from both Admarc and ZCF.
“That additionally, the plaintiff has evidence which it intends to plead to the effect [that] the failure by the defendant to perform its contract obligations to the plaintiff and the subsequent cancellation of the contract as between the plaintiff and the proposed 2nd defendant [Admarc] was as a result of the acts of both the defendant and the proposed 2nd defendant to induce the breach of both said contracts,” reads in part the application.
According to Mukoloba, the order is expected to be signed today before commencement of the proceedings.