Nico General Insurance Company Limited is demanding a whopping K22 million from the once mighty Mulli Brothers Limited for failure to pay for insurance premiums.
Meanwhile cheques that Mulli Brothers issued for Nico to cash have been bouncing at banks and this forced Nico to seek redress in the High Court of Malawi, Commercial Court Division.
According to court documents sourced by Nyasa Timesat the Commercial Court in Blantyre, Nico is demanding K19, 793, 719.92 plus interest at the current commercial bank’s ruling base lending rate.
A statement of claim filed in court by Nico General, between the months of March 2011 and May 2011, Nico General agreed to renew various motor vehicle and motorcycle insurance policies for Mulli Brothers and its subsidiaries or sister companies at the total premium sum of K22, 093, 719.92.
“The Plaintiff (Nico General) at the request of the defendant (Mulli Brothers) agreed that the said insurance premiums in the said sum of K22, 093, 719. 92 be settled through four monthly instalments under the plaintiff’s credit/ instalment facility,” reads the statement of claim in part.
The documents show that Mulli Brothers issued the four cheques but the first one was dishonoured by the bank and they advised Nico not to deposit the second cheque which was due on August 20, 2011 despite making assurances that they would pay the money.
“Following the Plaintiffs pressure, the defendant only paid the sum of K2.3 million thereby leaving a balance of K19, 793, 719.92. Despite several reminders, Mulli Brothers failed, neglected or refused to clear the overdue insurance premiums and that the agreed duration expired without payment,” reads the court documents in part.
Justice Dr Micheal Mtambo ruled that Mulli Brothers should pay the amount.
Mulli Brothers owned by Leston Ted Mulli was one of the powerful companies during the late Bingu wa Mutharika regime and many companies dared ask for their money from Mulli Brothers because of the political influence that Mulli commanded at that time.
But soon after the death of Mutharika, every company and even individuals being owed money by Mulli are now flocking to court to demand their money.