MOBILE telecommunications company, Telecel Zimbabwe, has been dragged to court after failing to pay rentals for one of its properties in Mabelreign for 32 months.
According to the summons now before the High Court, it’s arrears are now US$34 400 and the landlord, Peter Saopa also the applicant has tried to get payment to no avail.
Saopa is demanding that Telecel settles the bill before they cancel the deal between them.
According to the summons filed early this week, on February 1, 2010, the parties executed a lease agreement in which Telecel would lease the property as a cellular telecommunications cell site.
Parties agreed that the lease duration would be for 15 years commencing from February 1, 2010, to January 31, 2025.
They agreed that Telecel “would erect a cellular communications tower and mount a cellular antenna and microwave equipment on the property on an agreed location on the property,” reads part of the summons.
Saopa said rentals for the property was pegged at US$200 per month, which amount was to be reviewed after the first six months.
Thereafter the rental would be reviewed annually in accordance with the macro-economic conditions.
The Parties further agreed that the rentals would be paid six months in advance.
According to the agreement, Saopa was entitled to cancel the contract and evict Telecel and demand and damages in case of default.
On February 12, 2014, the parties agreed the rentals would be increased to US$1075 per month with effect from the 1st of February 2014.
“The Parties enjoyed a cordial contractual relationship until 2018.
On or around June 2018, Telecel unilaterally ceased rental payments due to Saopa without legal justification,” wrote his lawyers
However, Telecel remained in occupation and made no effort to remedy the breach of contract.
Saopa said sometime in August 2021, Telecel made a payment of $54 000 and indicated that the amount was for the period of June 2021 to November 2021.
“This amount cannot be said to cover the rental fees as agreed between the parties in the 2014 addendum even if it were converted to interbank rate nor did it cover the previous owed amounts which remain due and owing,” said Saopa’s lawyers before demanding that their client be paid US$34 400 being unpaid rentals for 32 months.
Telecel is yet to respond.