OPTIONAL ELECTRICAL AND INDUSTRIAL SUPPLIERS (PVT) LTD vs KAMATECH PROJECTS (PVT) LTD

HH 102-18

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Case Details

Court

Harare High Court

Date

19 February 2018

Citation

HH 102-18

Neutral Citation

[2018] ZWHH 102

Outcome

unknown

Case Type

Trial

Bench

Presiding

ZHOU J

Full Bench

ZHOU J

Areas of Law

Commercial lawCorporate lawContract law

Keywords

Debt recoverySet-off defenseShareholder agreementCorporate personalityBoard resolution

Key Issues

{"issue_text":"Whether the alleged arrangement between plaintiff's shareholders extinguished the debt owed by defendant to plaintiff","issue_type":"law","dispositive":"yes","related_facts":"Shareholder arrangement, lack of plaintiff authorization, absence of board resolution"}
{"issue_text":"Whether the arrangement qualified as a valid set-off","issue_type":"law","dispositive":"yes","related_facts":"No reciprocal debt owed to defendant by plaintiff, debt was between third parties"}
{"issue_text":"Whether plaintiff was bound by the arrangement between its shareholders","issue_type":"law","dispositive":"yes","related_facts":"Distinct legal personality of companies, no board resolution, plaintiff not a party"}

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background

Facts of the Case

Background

Plaintiff company sued defendant for payment of US$39,895-97 for electrical and industrial equipment sold and delivered. Defendant admitted the goods were delivered but claimed the debt was extinguished through a shareholder arrangement where one plaintiff shareholder would dispose of shares to another shareholder in return for debt cancellation.

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