The High Court in Blantyre has dismissed with costs Mulli Brothers application to stop court proceedings by Reserve Bank of Malawi as it seeks to recover over K1.4 billion from the company.
Mulli Brothers wanted the court to stop the court proceedings until the matter goes for arbitration.
But in his judgement dated June 15, 2022, Judge Jabbar Alide said while arbitration was one of dispute resolution mechanisms in the agreement, Mulli Brothers did not show willingness to take necessary steps for the arbitration to take place.
MBL obtained a K2.1 billion loan to supply fertiliser under the then Farm Input Subsidy Programme (Fisp).
However, MBL only paid K709.6 million.
MBL through its lawyers filed an application to stay the court proceedings and another order to decline jurisdiction against RBM’s court proceedings.
Source:Times
