17 February 2014

Tanzania: CMC Presses Madabida to Settle Us Dollars 12, 175 Outstanding Car Debt

A FAMOUS car dealer company, CMC Automobiles Limited, has sued a legislator, Ms Zarina Shamte Madabida (Special seat-CCM), to recover a debt for 12,175.50 US dollars in respect of a motor vehicle purchased under the Members of Parliament special price.

The suit which is before Senior Resident Magistrate Augustina Mbando at the Kisutu Resident Magistrate's Court in Dar es Salaam has been set for mention on February 27, pending filing of Written Statement of Defence by the defendant (Ms Madabida).

In the suit, CMC Automobiles Limited, the plaintiff, is asking the court to order the defendant to pay the said amount being outstanding balance of the purchased price of the motor vehicle. The Company also demands interest at commercial rate of 15 per cent per annum from the date when the amount unpaid accrued to the date of judgment and other interest at court rate at 12 per cent from the date of judgment until final payment and costs of the suit.

It is alleged that the plaintiff and defendant entered into an agreement whereby the former supplied to the latter a motor vehicle with Registration Number T 116 BRX, Ford Everest, 3.0 Litre Station Wagon under the Members of Parliament special price in which the total purchase price was 44,061 US dollars.

The defendant paid a sum of 19,710 US dollars which is convertible in local currency to the tune of 30m/- as down payment.

The balance of 24,351 US dollars was supposed to be paid in six equal installments of 4,058.50 US dollars between April 21 2011 and September 21, 2011. However, it is alleged that the defendant paid three installments only leaving a balance of the said 12,175.50 US dollars unpaid today.

The company has attached copies of the invoices and receipts of the payment to support its case. "Despite of several demands the defendant has refused or neglected to pay the said outstanding amount to date," reads a paragraph of the plaint of the suit.

The plaintiff has also attached a demand letter to the defendant for easy reference during hearing of the suit in question.

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