HomeEditor's ChoiceCourt orders Palace Hotel to settle $35 420 council bill

Court orders Palace Hotel to settle $35 420 council bill

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(File Photo): Palace Hotel
(File Photo): Palace Hotel

PALACE HOTEL (Private) Limited has been ordered to pay its outstanding rates bill amounting to $35 420 to Bulawayo City Council (BCC).

BY SILAS NKALA

This followed a lawsuit filed by council lawyers James, Moyo-Majwabu and Nyoni against Palace Hotel seeking an order compelling it to pay $74 711,74 which had remained unpaid since October 31, 2013.

But the two warring parties later settled for the payment of $35 420,52 being the balance of the amount claimed by the council with interest at the prescribed rate from July 18, 2014.

Bulawayo High Court judge Justice Nokuthula Moyo yesterday ordered that Palace Hotel to pay BCC $35 420,52 through instalments of $4 500 with the first instalment due on or before July 10, 2015 and thereafter each subsequent month until the whole judgment debt and interest has been paid off.

Moyo ruled that the hotel shall pay BCC legal costs totalling $11 697 by monthly instalments of $1 100 with interest at 5% on reducing balance with the first instalment on or before July 10 and thereafter each subsequent month until agreed costs are paid off.

It was BCC’s contention that Palace Hotel, situated along Jason Moyo Street, Bulawayo, receives services from the local authority and has levied rates and water charges.

“As at October 31, 2013 the defendant has accumulated arrear charges amounting to $74 711,71 which sum despite demand defendant has refused and /or failed to pay,” BCC said.

The hotel admitted a liability to pay $39 000 of the amount claimed and judgment was granted by consent for the amount claimed with the balance of the claim being referred to trial. This means that Palace Hotel does not agree that it owes the remaining amount of $44 711,71 which council believes it is owed.

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