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Fidelis Munyoro

Redan Coupon (Private) Limited, has been blocked from receiving and selling petroleum products from third parties at two service stations in Westgate and Avondale, Harare, until the contractual dispute pitting it and Redan Petroleum is resolved. 

Redan Petroleum and Redan Coupon are embroiled in a contractual dispute with the latter being accused of selling petroleum products to third parties in breach of the terms of contract signed between the two.

Redan Coupon is a fuel retail company, which offers flexible and reliable fuel solutions in the form of fuel coupons, fuel cards and bulk fuel to customers in Zimbabwe.

Coupons and cards are redeemed at any of the over 90 Puma service stations and at a number of non-Puma service stations countrywide. 

In this case, Redan Petroleum which is being represented by Advocate Thabani Mpofu, approached the High Court seeking an interdict against Redan Coupon, after it was caught selling petroleum to third parties at Westgate Mall Service Station and Avondale Service Station.

 In a case that will go down in Zimbabwean legal history as the first ever to be heard virtually at the newly established Commercial Court in Zimbabwe, Justice Sylvia Chirawu-Mugomba granted the application by Redan Petroleum, finding that the company had, at this stage, no other remedy to arrest the situation save for seeking an interdict.

 “Pending resolution of this matter on the return date: Respondent (Redan Coupon) be and is hereby interdicted from receiving and selling petroleum products from third parties at the following service stations: (a) Westgate Mall Service Station situated at stand number 1642 Bluffhill, Harare. (b) Avondale Service Station situated on the Remainder of Lot 3, Block C of Avondale, Harare,” read the interim order. 

 The court, however, directed Redan Petroleum to invoke of the licensing agreements of September 2018 and March 19 2019 on settlement of disputes within seven days of the date of the order or any other longer period as the parties may agree in writing. 

 Redan Petroleum, trading as Puma Energy, and Redan Coupon entered into two agreements of licensing in September 2018 and March 2019. The agreements related to two service stations one in Avondale and the other at Westgate Mall. In terms of the agreements, Redan Petroleum is obliged to deliver fuels, oils and other petroleum products to Redan Coupon at the two service stations.

 This is exclusive in the sense that Redan Coupon at the two service stations in terms of the agreements is restrained from receiving any products to sell from competitors.

 The service stations have been branded with the Puma logo. In breach of the agreements, Redan Coupon has reportedly refused to receive products from Redan and has procured products from third parties.

 Through its lawyer, Advocate Thembinkosi Magwaliba, Redan Coupon, vehemently denied that it had breached the agreements. 

It argued that the fact that it has not placed any order for products does not mean that it is getting such from third parties. The fuel coupon company also argued that it still has enough products in its stock.

 In addition, argued, Adv Magwaliba that the products procured from the third parties has not been identified and the third party has also not been identified.

 The dispute has its roots in disagreements over a shareholders’ agreement.