HARARE – A local company Allen Wack and Shephered (Pvt) Limited has approached the High court challenging a ruling ordering it to pay a US$3 million debt to Nestle Zimbabwe.

The company has applied for leave to appeal at the Supreme Court saying the High Court erred in granting the order in United States dollars when the Statutory Instrument (SI) 33 of 2019 rendered the debt to be valued in RTGS dollars.

The company also complained that in its judgment, the court did not give reasons for its disregard of their submissions of SI 33 of 2019.

The statutory instrument converted United States dollar balances into RTGS at a rate of 1:1.

“On October 25 last year, the applicant (Allen Wack and Shephered) and Nestle Zimbabwe concluded an acknowledgment of a debt of $3,118,287.70.  Allen Wack and Shephered (Pvt) Ltd was in breach payment of the debt,” read court documents.

The court heard that on January 30 this year under case HC561/19 Nestle Zimbabwe issued summons for provisional sentence against Allen Wack and Shephered (Pvt) Ltd.

The claim was opposed and Allen Wack and Shephered (Pvt) Ltd submitted that the sentence in favour of Nestle Zimbabwe could not be made in local currency at the rate of one is to one.

The High Court gave an order in favour of Nestle Zimbabwe plus interest from November 1 last year to the date of full payment and costs of suit.

“Under the proposed grounds of appeal, applicant’s contention is that the acknowledgment debt was affected by the SI 33 of 2019. It was an asset and liability to both applicant and respondent. The acknowledgement of debt was concluded on October 25 last year it therefore was a debt or asset immediately before February 22 this year.

“Thus, the earliest opportunity that applicant had to make submissions on the implication of SI 33 was at the hearing of the matter,” said the company.

Allen Wack and Shephered said the Supreme Court can pronounce on the correct interpretation of SI 33 of 2019.

“The correct interpretation would no doubt have a significant impact on how business and ordinary people citizens carry on their business,” the company submitted.

The case is pending.