CN PHARMACY BUSINESS SALE WRANGLE

MBABANE – Are there challenges in the business sector? This is because in the past two weeks, the High Court of Eswatini has been receiving a number of applications from entrepreneurs or their entities, fighting over shares or business deals that went sour.

CN Tower, Khephe Investments trading as CN Pharmacy, has instituted legal proceedings against one  Zakhele Mhlanga.  CN Pharmacy is a private limited liability company duly incorporated in accordance with the company laws of the Kingdom of Eswatini with the capacity to sue and be sued.
Its place of business is at Matsapha Industrial Site.

Claim

In its particulars of claim, the company stated that in December 2018, it entered into an oral contract of sale with Mhlanga.
According to the company, the terms of the contract among other provisions were that the plaintiff (CN Pharmacy)  was to sell a pharmacy business at Ngwane Park in Manzini  as a going concern for the sum of E100 000.

The plaintiff informed the court that it was agreed that Mhlanga would pay a sum of E50 000 as deposit upon the conclusion of the contract and thereafter pay the balance on or before January 31, 2019.

These are allegations contained in particulars of claim whose veracity is still to be tested in court and the defendant is yet to file its papers in the event it is disputing the claim against it.

It is alleged that on the date subsequent to December 2018, the defendant (Mhlanga) signed an acknowledgement of debt in favour of the plaintiff.
In the acknowledgment of debt, according to the company, Mhlanga stated that he would have no defence to any claim that might be raised by the plaintiff against the defendant in relation to the sale of the business.

It was also allegedly agreed that Mhlanga would not use the name ‘CN Pharmacy’ in his newly- acquired business. As such, the name was exclusively used by the plaintiff in its business dealings.

“In material breach of contract, the defendant has omitted to pay the plaintiff the sum of E52 000 as per the contract. Despite lawful demand, the defendant either fails, neglects and/or refuses to pay the aforementioned sum,” reads part of the particulars of claim filed by CN Tower - Khephe Investments trading as CN Pharmacy.

The plaintiff is represented by lawyers from TL Dlamini & Associates.  The matter is still pending at the High Court.
It should be mentioned that shareholders of Pub and Grill (PTY) Limited are also embroiled in a dispute over the sale of shares.

One of the shareholders, Simon Magagula, is now demanding a refund of E300 000 from businesswoman Lebohang Clayton, who is also a shareholder at the popular eatery and bar which is situated at Ezulwini.

Through his attorneys from Robinson Bertram, Magagula has since instituted legal proceedings against Clayton where he is demanding the aforementioned amount.

In his particulars of claim, Magagula alleged that on or about July 1, 2015, he entered into a written sale of shares agreement in the company Pub and Grill (PTY) Limited.

He informed the court that the material terms of the agreement was that Clayton sold to him 55 per cent shares in the company.
“The purchase price of the shares was E1 166 763.29. It was further agreed that within seven days of the agreement the defendant (Clayton) shall deliver to the plaintiff (Magagula) the shares certificate in respect of shares being sold,” reads part of Magagula’s particulars of claim.

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