Housing association sued over $300k debt

Herald Reporter
Quard Housing Trust in Africa, a property development company, has taken Chiremba Park Housing Association to court over a $301 000 debt accrued after the association failed to pay for the servicing of its residential stands in Hatfield, Harare.

Alternatively, Quard Housing Trust in Africa has demanded the release of 33 stands in the same area to offset the debt.

Represented by its lawyer, Mr Obedience Machuvaire of Attorneys at Law, Quard Housing Trust in Africa filed an application at the High Court asking the cost of the suit to be borne by Chiremba Park Housing Association at a high scale.

The chairman of the association, Washington Mujeri, is cited as the first defendant while Richard Kahari, Pamhidzai Shoko and one T. Madzimbamuto were also cited as defendants in the matter.

“On the 13th December 2013, the plaintiff and the first defendant entered into an agreement in terms of which the plaintiff would offer construction services and other work ancillary to construction in Chiremba Park,” reads part of the application.

“In terms of the written agreement, the plaintiff had an obligation to offer construction services and the first defendant offered stands as an exchange for part payment for the services rendered. The first defendant offered 55 stands,” it said.

“The plaintiff duly performed its obligations in terms of the agreement.

“On the 21st January 2015, the plaintiff submitted the statement of account clearly specifying the work done and amount owing. In that statement the defendant was given 14 days to make payment. The first defendant duly acknowledged the statement of account and never disputed it.”

Quard Housing Trust in Africa further argued that the work it undertook on behalf of Chiremba Park Housing Association included bush clearing, road bed preparation, road formation, subgrade control compaction, sub-base control compaction, state pilling gravel and trench excavation.

The company said the work they had done was worth $723 893.53 and that out of the 55 stands offered by the association, only 18 stands valued at $422 000 were released, leaving a balance of $301 893.53.

“Despite demand, the defendant is refusing (or) neglecting to make payment,” argued Quard Housing Trust in Africa.

Quard Housing Trust is seeking court intervention to recover its money with interest at a prescribed rate from the date of demand.

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