17 March 2014

Tanzania: MP Pushes to Thwart Car Dealer's Debt Recovery Bid

MEMBER of Parliament, Zarina Shamte Madabida has asked the Kisutu Resident Magistrate's Court in Dar es Salaam to dismiss with costs the suit lodged by a famous car dealer, CMC Automobiles Limited, to recover a debt for 12,175.50 US dollars.

It is alleged that the lawmaker (Special seat-CCM) had acquired a motor vehicle from the company, purchased under the Members of Parliament special price.

But in her written statement of defence filed before the court, Ms Madabida denies any liability.

"The claim is grossly misconceived and untenable in that the alleged sum of 12,175.50 dollars was fully defrayed by the defendant's motor vehicle, a Free Lander with registration number TZP 6828, which was surrendered, delivered to and accepted by the plaintiff," reads part of the defence document.

She alleges that such vehicle delivered was part payment of the purchase price of the Ford Everest with registration No. T116BRX she had acquired from the company.

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 T116 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 up to day.

The company has attached copies of the invoices and receipts of the payment to support its case. "Despite 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.

In her defence, the MP admits some of the facts, including entering into sale agreement of the said motor vehicle, but denies that there was any agreement to pay six equal installments of US$ 4,085.50 between 21st April 2011 and 21st September 2011, thus disputes the proforma invoice.

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