HH 449-18 SFG INSURANCE COMPANY (PVT) LTD (IN LIQUIDITION) v BAOBAB REINSURANCE (PVT) LTD & Ors

SFG INSURANCE COMPANY (PVT) LTD

(IN LIQUIDITION)

versus

BAOBAB REINSURANCE (PVT) LTD

and

TROPICAL REINSURANCE COMPANY LTD

and

GRAND REINSURANCE COMPANY (PVT) LTD

 

 

 

HIGH COURT OF ZIMBABWE

DUBE J

HARARE, 26 February, 17 & 18 May, 25 July 2018

 

 

Civil Trial

 

 

K Kachambwa, for the plaintiff

W P Zhangazha, for the defendants

 

            DUBE J: The plaintiff’s claim against the defendants is for breach of a Facultative Reinsurance Guarantee Agreement by the defendants. It seeks payment from the first to third defendants in the sums of $ 691 892.21, $345946.12 and $ 518 919.18 respectively.

            The plaintiff’s claim is based on the following synopsis. The plaintiff issued a payment guarantee in favour of the Zimbabwe Fertilizer Company Ltd (ZFC) in terms of which ZFC agreed to supply tobacco farmers who were members of the Zimbabwe Progressive Tobacco Farmers’ Union (ZPFTU) with tobacco inputs for the 2011 to 2012 farming season. This was on the understanding that if the farmers failed to repay ZFC for the inputs due and such amounts remained unpaid for thirty days, the plaintiff would guarantee payment of such amounts as surety and co-

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2018