Higer sues Shalom Bus Services for $235,000 debt

Higer Bus Company Limited and Higer Bus Zambia Limited have sued Shalom Bus Services Limited in the Lusaka High Court demanding payment of US$235,000 debt.

The said money was under a Credit Sale Agreement dated June 4, 2014 made between Higer Bus Company Limited and Shalom Bus Services Limited for the purchase of five motor vehicles.

Higer Bus Company Limited and Higer Bus Zambia Limited are now seeking an order for possession and delivery of the vehicles and the four buses pledged as collateral by Shalom Bus Services Limited under the agreement.

The two companies are further seeking an order for the sale of the vehicles and buses, interest at 2.5 per cent per annum on the sums due in accordance with the agreement.

They also want interest at the current lending rate as determined by the Bank of Zambia from the date of judgment until the date of payment.

In a statement of claim filed in the Lusaka High Court commercial registry, January 16, 2020, Higer Bus Company Limited stated that it had its registered office at Suzhou Industrial Park, Jiangsu Province, China and was engaged in the business of sale and repair of motor vehicles.

And Higer Bus Zambia Limited stated that it was registered in Lusaka and was engaged in the business of sale and repair of vehicles, being a branch of Higer Bus Company Limited.

The plaintiffs stated that Shalom Bus Services Limited had its registered offices in Lusaka and engaged in the business of providing transportation services.

They stated that by a Credit Sale Agreement dated June 4, 2014, Higer Bus Company Limited agreed to sell and Shalom Bus Services agreed to purchase five motor vehicles at the total purchase price of US$700,000.00.

“The terms of the Agreement made between Higer Bus Company Limited and Shalom Bus Services were inter alia as follows; that the purchase price of US$700, 000.00 was to be paid in three equal installments with the first installment of US$233, 334.00 payable on July 30, 2014, the second installment of US$ 233, 334. 00 payable on August 30, 2014 and the final installment of US$ 233, 334.00 payable on September 30, 2014,” read the statement of claim.

The plaintiffs stated that it was agreed that in the event of default in any installment payment for 30 days from the date of the last installment, Higer Bus Company Limited would levy interest on the outstanding amount at a rate of 2.5 percent per annum.

They stated that it was also agreed that upon Shalom Bus Services defaulting in the payment any of the installments for a period of 15 days from the due date of default, Higer Bus Zambia Limited would be at liberty to repossess the vehicles and sell them to a willing buyer.

The two plaintiff companies stated that four buses were pledged by Shalom Bus Services as collateral to be sold to a willing buyer if it failed to pay according to the payment schedule agreed by the parties.

They further stated that in line with clause five of the agreement, Higer Bus Company Limited authorised Higer Bus Zambia Limited to take full responsibility of controlling the risk of the vehicles and to take any necessary measures to guarantee Higer Bus Company’s rights in relation to the vehicles before the purchase price was fully paid.

The plaintiffs stated that Higer Bus Company Limited supplied and delivered the vehicles to Shalom Bus Services in accordance with the terms of the agreement of the parties.

They, however, stated that Shalom Bus Services instead made scanty payments, on various dates between December 2014 and April 2015 for the total of US$200,000.00, leaving an outstanding balance of US$500,000.00 on the purchase price of the vehicles.

“By a letter dated January 25, 2016 , Shalom Bus Services proposed to settle the outstanding balance of US$500,000.00 in monthly installments of a minimum of US$10, 000. 00. Higer Bus Zambia Limited agreed to the said proposal following which Shalom Bus Services made various payments on divers dates between February 18, 2016 and June 12, 2018 amounting to a total sum of US$215, 000 leaving an outstanding balance of US$285,000. 00,” read the statement of claim further.

The plaintiffs stated that Shalom Bus Services subsequently ceased, failed and or neglected to make the agreed monthly payments.

They stated that Shalom Bus Services later made an undertaking to resume liquidating the outstanding balance by paying monthly installments of US$10, 000 beginning on October 31, 2018 but it instead made scanty payments on various dates between November 8, 2018 and June 4, 2019 amounting to US$50, 000 leaving an outstanding balance of US$235,000.

The Plaintiffs stated that Shalom Bus Services subsequently defaulted on the payment of the agreed monthly installments leaving an outstanding balance of US$235,000 and thus remains indebted to Higer Bus Company Limited in the sum of US$235,000 despite numerous reminders.




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