Mzuzu-based contractor is engaging the Sheriffs of Malawi to impound Mulli Brothers Limited property after the company failed to pay part of K5 million it owes the contractor.
Court documents we have seen say a cheque that Mulli Brothers Limited deposited with the Sheriffs of Malawi to clear debts with Lunyina Haulage was referred to drawer because there was no money in the account.
Mulli sub-contracted Lunyina Haulage to transport fertiliser during the 2010/2011 Farm Input Subsidy Programme (Fisp).
Lunyina took Mulli to court seeking K9 million as payment for the work, but the High Court in Mzuzu reduced the figure to K5 400 322.86.
When Mulli appealed the ruling, the court ordered the company to deposit the money with the court so that in the event that it loses the appeal, it should go to Lunyina Haulage.
Lawyer for Mulli, Chancy Gondwe, asked the court to allow the company to pay the money in three equal instalments, which means payment of around K1.6 million a time. The court accepted the plea.
However, a cheque the company deposited with the Sheriffs of Malawi for the first installment of the payment bounced at the bank.
Meanwhile, Lunyina has filed for a certificate of non-compliance, according to court documents.
The company’s lawyer, Mustafa Amidu, confirmed initiating the legal process.
The document says Mulli failed to comply with the conditions set in the court order of January 21 2013.
“The defendant [Mulli] issued what they called a bank certified cheque to the Sheriffs of Malawi as first installment with knowledge that there were no funds in that account and the cheque has been referred back to the drawer; hence, no payment,” said Amidu in court documents.
He later told Nation on Sunday that he would ask the sheriffs to impound Mulli’s property because the company has failed to comply with a court order.
Gondwe, Mulli’s lawyer, declined to comment on the matter when contacted.