KASAMA PF member of parliament Kelvin Sampa has asked the Lusaka High Court to stay proceedings in a case in which RL Extrem Investment Limited has sued him for allegedly failing to pay over K2 million after supplying him with more than 4,000 security boots.
Sampa wants the Court to stay proceedings and to refer the matter to arbitration.
He has stated that the claims brought before court by RL Extrem Investment Limited arise out of the sale of goods agreement which was signed between himself and the said company in his capacity as the national chairman of the Patriotic Front party.
Sampa further stated that the said sale of goods agreement in clause 10 has an agreed dispute resolution mechanism, which is arbitration, adding that on account of the agreed dispute resolution, this is a fit and proper case for the Court to stay proceedings and refer the matter to arbitration.
This is according to an affidavit in support of summons for stay of proceedings, pending arbitration and to refer matter to arbitration, filed in the Lusaka High Court recently.
Sampa argued that the grant of such application will not prejudice RL Extrem Investment Limited in any way, but conversely the interest of justice will best be served.
And according to skeleton arguments in support of summons for stay of proceedings, pending arbitration and to refer matter to arbitration, Sampa stated that the Court had the requisite jurisdiction to stay proceedings in this matter and refer the case to arbitration.
He added that it would, therefore, be in the interest of justice for the Court to grant his application as both parties intended to have their disputes resolved through arbitration and not through the courts.
In its statement of claim filed in the Lusaka High Court on September 21, RL Extrem Investment Limited had stated that it was involved in general supply of goods in Lusaka and elsewhere in Zambia.
It stated that by contracts in writing dated November, 2019, it supplied Sampa 226 security boots at K550 per pair totaling K124,300 on one hand and 4,200 security and safety boots at K430 per pair totaling K1,890,000 altogether coming to K2,014,300.
RL Extrem Investment stated that it was a term of the contract that upon delivery of the goods, Sampa would pay 50 per cent of the total amount.
It added that it delivered the goods during the course of November, 2019, which were duly received and acknowledged by Sampa.
The company, however, stated that Sampa failed to pay the 50 per cent or any other sum, as agreed.
“By a demand letter dated June 23, 2020, addressed to Sampa’s advocates, the company through its advocates made its first demand in writing for the payment of K2,014,300. The defendant has either failed, refused or otherwise neglected to settle the claimed amounts,” read the claim.
The company stated that it was entitled to claim the said sum of K2,014,300, together with interest and costs.