Yeukai Karengezeka Herald Correspondent
CMED (Private) Limited has dragged Croco Motors to court for failing to deliver two outstanding vehicles bought in 2018.
CMED, a State-owned enterprise, has approached the High Court claiming the supply and delivery of two Datsun Go 1.2 vehicles.
It is also claiming $416 000 in damages for loss of business calculated from December 2018 to January 2020, together with interest at the rate of five percent per annum from the date of summons to date of full payment.
The damages are for breach of contract, to be paid in the sum equivalent to the current market value of the two vehicles.
Reads the summons: “Plaintiff (CMED) operates a driving school business and on average each car does 350 lessons a month at $40 a lesson. The car also gets hired for VID road tests and gets hired on average every month ten times at $200 per each car hire.
“A combination of the car hires and lessons meant that the two cars were supposed to generate $460 000 from the date that the defendant was supposed to have delivered the cars in December 2018 to date, which period is now 13 months.”
In the summons, CMED said in September 2018, it entered into an agreement with Croco Motors for the supply of six Datsun Go 1.2 vehicles at an agreed purchase price of US$113 400, including value added tax and customs and excise duty.
The agreement stipulated that delivery was supposed to be done within six to eight weeks.
CMED completed the payment on September 13, 2018, but Croco Motors only delivered four vehicles and to date has refused to deliver the remainder.
CMED is demanding that the automotive company pays the cost of the suit.
Croco Motors is yet to respond to the claims.