One of the country’s fuel service providers, Total Malawi Limited has dragged to court National Bus Company for failing to settle outstanding fuel debt of amounting to K20 million.
Total Malawi has since requested the commercial division of the High Court to liquidate the company owned by business mogul, Mulli Brothers Company Limited.
In a petition advertised in the daily newspapers, Total Malawi Limited through its lawyer, Ambokire Salimu, wants the bus service company to be winded up for failing to pay K20 million which was part of K42, 627, 610.85 it incurred by obtaining fuel on credit.
According to court case number 2 of 2017, National Bus Company has been failing to honor agreement the two parties made during the 2016 court mediation process where the bus company pledged to settle the debt through monthly installments of K2 million.
“Winding up of the company is sought on the basis that it is failing to pay off a debt to Total Malawi Limited which it incurred after procuring fuel products from the petitioner on credit. A consent order in commercial cause number 63 of 2014 executed by the parties on 10th November, 2016 by which the respondent [National Bus Company] commits to pay the sum of MK42, 627, 610.85 by MK2, 000,000.00 monthly installments has been breached so much so that the respondent now [has] arrears of MK20, 000,000.00,” reads in part the court document.
Salimu argues that “It is only just and reasonable in the circumstances” that National Bus Company be liquidated so that his client is able to reclaim their money.
National Bus Company has up to November 22, 2017 to respond to the petition, and according to the petition, National Bus Company’s nominal share capital is not known.Follow and Subscribe Nyasa TV :