NetOne drags construction company to court over $111k debt

By Staff reporter | 06 Nov 2019 at 18:27hrs
NETONE Cellular (Private) Limited has dragged Bensa Power Construction and Electrical Installations and Supplies (Private) Limited to court demanding a refund after the latter failed to fulfil a contract obligation.

The dispute arose back in 2017 and according to court papers, the construction company failed to honour the parties' agreement.

NetOne submitted that on the 24th April 2017, it entered into an agreement with Bensa Power Construction company in terms of which defendant would supply, deliver and install two by 200kw air conditioning units for NetOne's Ascot Bulawayo switch.

The court heard the price for the supply, delivery and installation of the two air conditioning units would be US$277 604.

"In terms of clause 3 of the agreement, plaintiff paid a deposit in the sum of US$111 041 on September 9 2017. The balance was to be paid after installation of the air conditioning units.

"Defendant was to supply, deliver and complete the installation within eight weeks from the date of payment of the deposit that is by November 3 2017," reads the court application.

"In breach of the contract between the parties, defendant has failed to supply, deliver and install the air conditioning units."

According to court papers, on April 9, NetOne then gave notice of its intention to cancel the agreement and demand a refund and damages if the company did not perform its part of the contract by April 25 2018.

Still, the company failed to perform despite the demand.

On August 2018, NetOne then cancelled the agreement and is now claiming a refund to the sum of US$111 041 which it paid to the construction company, with interest thereon.

The case is pending.



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