Cavmont Bank Limited has dragged Lawrence Sikutwa and his company, Lawrence Sikutwa and Associates, to the Lusaka High Court, demanding payment of all sums due to it under a Loan Agreement of October 7, 2016 and third party mortgage amounting to 240,463.26 USD.
The bank has cited Lawrence Sukutwa and Associates Limited, Amalgamated Tourism Investment Limited and Sikutwa as first, second and third respondents, respectively.
It has sued Sikutwa and Amalgamated Tourism Investment Limited in their capacities as surety and co-principal debtors.
Meanwhile, Cavmont Bank and the other respondents have applied to enter into a consent judgment in favour of the bank for the sum of 240,463.26 USD and all accruing interest until final payment as per Loan Agreement made between the parties dated October 7, 2016.
In an affidavit in support of originating summons filed in the Lusaka High Court principal registry, January 8, Elita Shumba, the bank’s Manager-Rehabilitation and Recoveries, stated that by a Loan Agreement dated October 7, 2016, the bank advanced Sikutwa’s company, the sum of 340,000. 00 USD which was to be repaid with interest.
She stated that the Loan Agreement contained inter alia, term and conditions that by clause 1.5, the Security required to secure the company’s indebtedness to the bank as limited guarantee by Amalgamated Tourism Investment supported by First Registered Leasehold mortgage for US$150,000.00 over S/D of No 1942 Livingstone.
Further, a limited cession over Government bonds for K500, 000.00 held with Cavmont Bank by Madison Asset Management Company Limited and also Limited Guarantee by Sikutwa.
Shumba stated that despite the bank demanding for the sums due and interest in accordance with the Loan Agreement and the Mortgage Deed, the respondents had refused, failed or neglected to settle the outstanding sums.
She stated that the state of the account between the parties was 340, 000.00 USD total amount of advance, 13,787.66 USD interest accrued and 15,622.41 USD interest paid year to date, 34,309.59 USD interest paid last year and 240,463.26 USD total amount due at the date hereof.
The bank now wants the court to order the respondents to pay all sums due to it for insuring and valuation of the mortgaged property as per the third party mortgaged deed and payment of all other fees and charges incurred by the bank in enforcing the security, among others.
And in a Consent Judgment filed into court on January 8 this year, the parties have agreed that the respondents shall pay the bank 240,463.26 USD within six months from the date of execution of the consent judgment by depositing the installments into Lawrence Sikutwa and Associates Limited’s account held with Cavmont bank.
The amount shall be paid in installments of 7,000.00 USD for five months from January 31, 2020 to before or on May 31, 2020 while the sum of 205, 463.26 USD together with all accrued interest should be paid on or before June 31, 2020.
It is further proposed in the consent judgement that the respondents shall pay the bank 12,023.16 USD plus VAT as legal costs in two equal installments first on or before January 31, 2020 and second before or on February 29, 2020 among others.
In default of the respondents paying to the bank, Amalgamated Tourism Investment stand absolutely debarred and foreclosed of and from all rights, title, interest and equity of redemption of in and to the property known as subdivision B of stand no. 1942 Livingstone, which said property is comprised in the third party mortgage.