Mount Meru Petroleum Zambia has sued Chimnkoms Management Limited of Chibombo district in the Lusaka High Court for failing to pay over K600,000, being an amount due after drawing diesel and petrol from the company’s Chibombo filling station.

In a statement of claim filed, September 26, the oil company stated that through an agreement entered between the two companies, Chimnkoms was upon making an advanced payment, allowed to draw diesel and petrol from Mount Meru’s Chibombo service station.

They stated that Chimnkoms however, proceeded to draw diesel and petrol from the filling station without first having made the necessary advance payment.

“Without making necessary advance payment and contrary to the terms of what had been agreed between the two companies, Chimnkoms drew diesel and petrol from Mount Meru’s Chibombo filling station without first having made the necessary advance payment,” read the statement of claim.

The oil company stated that as at August 10, this year, there was an amount of K637,369 due from Chimnkoms for the diesel and petrol that they had drawn between June 20 and March 3, 2018, from Mount Meru’s Chibombo filling station.

They stated that despite numerous demands and reminders, Chimnkoms had neglected to pay the said amount.

The oil company further stated that Chimnkoms had also issued to them two cheques dated July 12, 2018 for K25,000 each as part payment but the said cheques were both dishonoured by the bank when they were presented for payment.

They disclosed that despite having been notified of the dishonour of the said two cheques, Chimnkoms had refused to replace them adding that they had suffered loss and damage as a result of Chimnkoms actions.

They are now claiming for payment of K637.369, being payment due from Chimnkoms, K50,000 being the value of the two cheques which were dishonoured by the bank, interest, costs and any other reliefs the court may deem fit.