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Case 324: MAL 8
Zimbabwe: Harare High Court (Judge Smith); Judgment No. HH-19-2000
18 and 26 January 2000
The Eastern and Southern African Trade and Development Bank (PTA Bank) v. Elanne (Pvt.) Ltd. and R.G. Paterson and M. E. Paterson
Original in English
Unpublished
A bank made a loan to a company, which was guaranteed by the defendants. The company defaulted and the bank sued the defendants for the payment of the amounts due under the loan agreement. The defendants raised a special plea that proceedings be stayed and the matter be referred to arbitration in accordance with article 8 MAL and in terms of arbitration clauses contained in both the loan agreement and the deed of guarantee.
The court held that, although the defendants had argued that the bank had no right to interest payments actually made, no right to charge interest on interest and no right to claim commission charges, these were matters which could not be used in argument to establish the existence of a dispute. Since the defendants had not alleged that there was an actual dispute, article 8 MAL did not apply and the special plea was dismissed.
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