The High Court in Mzuzu has ordered the sealing of Mulli Brothers Limited (MBL) premises at Luwinga in the northern Malawi city after the company failed to honour a court order to deposit K9.4 million (about $28 484) with the court.
The court had earlier ordered MBL to pay Lunyina Haulage K9.4 million which included outstanding debt, value added tax (VAT) and interest.
The sealed premises include a garage and warehouse.
The court was told MBL had sub-contracted Lunyina Haulage to transport fertiliser during the 2010/11 Farm Input Subsidy Programme (Fisp). There was a balance of K5 400 322.86, but the amount rose due to VAT and interest, among others.
MBL appealed the ruling. However, its lawyer, Chancy Gondwe, asked for a stay of execution because, among other reasons, there were no prospects that if the money is paid to Lunyina Haulage, MBL will be able to recover the same in the event that the appeal succeeds.
High Court Judge Dingiswayo Madise granted the stay on condition that MBL deposited the money with the court.
Lawyer for Lunyina Haulage, Mustafa Amidu, said the premises have been sealed because MBL failed to deposit the money as the judge ordered.
But Gondwe on Sunday described the sheriffs action as irregular.
When told that the reason is MBL’s failure to deposit money with the court, Gondwe said there was no specific period for that.
“The order did not state the time the money should be deposited. Again, the sheriffs were ordered to execute chattels not seal the premises,” said Gondwe. He said he will file for loss of business because of the action.