Indo-Zambia Bank (IZB) Limited has dragged Thornhill Boarding and Day School to court for failing to remit over K400,000 to the bank, being monies collected by the school after deducting loan repayments from its borrowing employees.
In a statement of claim filed in the Lusaka High Court, Tuesday, the bank stated that on January 5, 2016, they made a written agreement with Thornhill and the school agreed to facilitate a scheme whereby its employees would access loan facilities from the bank.
The bank stated that by clause 4.2 of the agreement, Thornhill was obliged to deduct loan repayments from its borrower employees and remit to the bank’s designated account at the bank’s Manda Hill branch.
They further stated that pursuant to clause 4.8 of the agreement, Thornhill agreed to make good any monies deducted from respective borrowers, but not remitted to the bank, inclusive of interest accrued during the period the money was deducted, but not remitted.
The bank further stated that pursuant to the provisions of the agreement, the bank signed facility agreements with Thornhill’s employees.
They stated that as at the date of filing this writ of summons and statement of claim, Thornhill had deducted a total of K406,602.81 from the various borrowers aforesaid, but had deliberately withheld the said monies from the bank.
They stated that the said amount continued to accrue interest pursuant to clause 4.12 of the agreement at 27.5 per cent per floating.
The bank disclosed that despite several written demands from the bank and its lawyers, Thornhill had refused to settle the debt, and as the result, the bank had suffered losses.
“That despite several written demands from the bank and its lawyers, Thornhill has refused and neglected to settle the debt or any part, thereof, and the bank, which uses other depositors’ monies in its business of lending has, thereby, suffered loss and damages,” read the statement of claim.
The bank is now claiming payment of K406,602,81 being monies collected by Thornhill from its employees, which the school had failed to remit to the bank in breach of the terms of an agreement dated January 5, 2016.
They are further claiming for interest at contractual rate of 27.5 per cent per annum floating, from the date the amount was due up to the date of payment and costs.