The High Court of Malawi Commercial Division in Blantyre has dismissed with cost an application by Mulli Brothers Limited-MBL to halt a case in which Reserve Bank of Malawi is claiming 1.4 Billion Kwacha from the company.
The claim is for the loan which the company acquired from the bank.
MBL acquired 2.1 Billion Kwacha from the Reserve Bank of Malawi to supply fertilizer under the under the Farm Inputs Program but it only managed to pay back 706 Million Kwacha- which forced the Central bank to sue the company.
However, the company through its lawyers filed an application to stay proceedings in the matter pending arbitration talks which were supposed to be held in UK.
The company also asked for an order for the court to decline jurisdiction against RBM’s court proceedings.
But Judge Jaba Alide- has dismissed both applications with costs.
Speaking to MIJ Online, Thabo Chakaka Nyirenda who represented the Central in the case- said the ruling means that proceedings –in the case in which Reserve Bank of Malawi is claiming 1.4 Billion Kwacha from Mulli Brothers Limited will continue.