The Supreme Court has ruled that all debts incurred before the 22nd of February 2019 shall be settled in the local currency on a one to one basis in line with the Statutory Instrument 33 of 2019.
The judgement was made by Chief Justice Luke Malaba together with Justice Susan Mavingira and Justice Nicholas Mathonsi in an appeal case involving Zambezi Gas Zimbabwe (Pvt) LTD against V.N.R.Barber and the Sherriff of Zimbabwe.
Zambezi Gas Zimbabwe had appealed against a High Court judgement which instructed the gas company to pay a debt using the date’s interbank rate in May 2018 and not 1:1 which was effected in 2019.
The court heard that V.B.R Barber offered services to Zambezi Gas Zimbabwe services in May 2018 charged at US$3 885 000.00. Following the promulgation of S.I 33 of May 2019, Zambezi Gas, paid RTGS$ 4 136 806.54, to V.B.R. Barber, being debt plus interest.
V.B.N Barber then approached the High Court to force Zambezi Gas to pay an additional US$ 3 992 018.31 arguing that RTGS$ 4 136 806.54 Zambezi Gas had paid was equivalent to US$144 778.23 as per the payment date’s interbank rate in May.
Chief Justice Malaba, however, ruled that the payment of Rtgs$ 4 136 806.54 made by the Zambezi Gas was in full and final settlement of the debt in terms of Section 4(1) (d) of the Statutory Instrument 33 of 2019.
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