FERTILISER manufacturing company, ZFC Limited (ZFC), has approached the High Court after it was allegedly fleeced of $1,2 million by a local firm.
According to court papers, ZFC entered into an agreement with Farmore Enterprises (Farmore) in 2014 for the supply of chemicals and fertilisers which were to be sold on behalf of the manufacturing firm.
“On or about December 1, 2014, the plaintiff (ZFC) and defendant (Farmore) concluded a stock consignment agreement.
“The following were the material terms of the agreement: plaintiff would supply the defendant with fertiliser and agro-chemicals, which the defendant would sell, and, thereafter, account to, and remit all sale proceeds to the plaintiff, every week.
“Defendant would retain a commission of 4,76 percent on all sales made and in the event of a breach, defendant would be liable to pay a penalty interest at the rate of five percent per month,” the court was told.
The court further heard that Farmore received fertiliser and agro-chemicals worth $1 242 017 between September and October last year, but only remitted $21 542, 99 leaving a balance of $1 209 867 and an additional US$130, 39.
ZFC is now demanding the remaining balance as well as a penalty fee for breach of contract.
Farmore has not yet responded to the court application in a matter still pending before the High Court.