C and T Mining Ordered to Settle Massive US$270K Debt in RTGS to Switzerland-Based Company, Addax Energy SA[Image Credit: Facebook]

C and T Mining Ordered to Settle Massive US$270K Debt in RTGS to Switzerland-Based Company, Addax Energy SA

Switzerland-based energy company, Addax Energy SA, has faced a legal setback as the High Court ruling has ordered C and T Mining Private Limited to settle its debt of US$270,000 in local currency (RTGS).

Addax Energy’s Operations Background

Addax Energy, based in Geneva, Switzerland, specializes in procuring petroleum fuels from the United Arab Emirates, India, and Russia for supply to the Zimbabwean market.

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The Unpaid Fuel Debt

According to Addax’s claim, it delivered diesel valued at US$1,379,601 to C and T Mining, with an agreement for payment within 14 days. However, C and T Mining failed to make the payment within the time-frame agreed. This led Addax to terminate the contract and demand the return of the fuel. Subsequently, Addax revised its claim, seeking US$269,735.88 for the fuel deliveries.

The Currency Settlement Dispute

C and T Mining offered to settle the debt in local currency at the applicable exchange rate, but Addax refused, insisting on foreign currency payment.

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Court Proceedings

During the court proceedings, Addax, represented by Iddo Tonderai Mudavanhu, argued that C and T Mining was their client and that the fuel had been paid for in US dollars. Mudavanhu stated that Addax operated a transitory offshore account with a local bank, Ecobank, and had approval from the Reserve Bank of Zimbabwe to trade in foreign currency.

In response, Felix Chinhamo, representing C and T Mining, argued that there was no specific agreement between the two parties regarding the currency of payment.

High Court Ruling

High Court Judge Justice Joseph Chilimbe ruled in favor of C and T Mining, stating that Addax had not provided sufficient explanation as to why it required payment in foreign currency. The judge emphasized that the mere importation of a product does not automatically classify the resulting obligations as foreign debt. Consequently, the judge dismissed Addax’s application and ordered C and T Mining to settle the debt in local currency(RTGS) at the prevailing exchange rate on the date of settlement.