The Supreme Court of Appeal in Blantyre yesterday differed its ruling on case in which Malawi Savings Bank (MSB), wants the court to vacate a stay order, obtained by Mulli Brothers Limited, stopping the company from repaying K3.2 billion loan to the bank.
In September this year , Judge Michael Mtambo ordered Mulli to repay the loan, accumulated to K3.2 billion, which was obtained as an overdraft about four years ago but was turned into a medium-term loan. The company had committed to repay the loan over a period of 60 months in equal monthly installments of K82,131,869.43.
Mulli through his lawyer was dissatisfied with the ruling and he launched an appeal against the ruling at the Supreme Court.
During the court seating on Monday, Supreme Court of Appeal Judge, Justice Robert Chinangwa said would deliver later his ruling on the application by MBL’s lawyer, Chancy Gondwe of Chancy and Associates to extend the Stay Order they obtained stopping execution of the lower court’s ruling to pave way for an appeal against the figure.
Lawyer representing Mulli said his client was willing to repay the loan but faulted the figure and the procedure the lower court used to come up with the amount.
He said the lower court did not take into account over K600 million the company already repaid to the bank.
MSB sued MBL to court, accusing the company for lack of commitment to repay the loan. Mulli, however, accuse the bank of unfair treatment.