DOMINION TRADING FZ-LLC v AGRIFOODS (PVT) LTD 2016 (2) ZLR 146 (H)

Flynote

Practice and procedure: " provisional sentence " liquid document " what constitutes " acknowledgement of debt with conditions of payment " existence of conditions not rendering document illiquid

Headnote

The plaintiff claimed full payment of a debt by means of provisional sentence summons. The defendant had signed an acknowledgement of debt to be paid in instalments. As long as the instalments were paid, the plaintiff would supply goods to the defendant. However, according to the agreement, if the defendant missed two consecutive payments, the full amount would be due immediately, and the plaintiff would no longer be obliged to provide the stated goods. The defendant missed two consecutive instalments, and the plaintiff issued provisional sentence summons. The defendant countered that the acknowledgement of debt was not a liquid document since it had conditions, and hence provisional sentence proceedings could not be utilised. Further, interest was not liquid and could not be claimed through provisional sentence.

Held, that conditions of payment as in this acknowledgement of debt did not mean that the document was not liquid. The amount to be paid was clearly stated. Interest in a fixed amount is also liquid. Provisional sentence was appropriate and would be granted.