Eco Fuel loses bid to overturn N$5.4 million default judgment
Judge rules in favour of Engen
Eco Fuel Investments CC, trading as Eco-Fuel and owned by fugitive businessman Victor Malima, has failed in its bid to overturn a N$5.4 million default judgment, after the High Court ruled last Friday that Engen Namibia validly served summons at the company’s legal address.
Eco-Fuel had claimed the documents were delivered incorrectly, as the company had moved offices.
Judge Orben Sibeya dismissed Eco Fuel’s application to rescind the default judgment and ordered the company to pay Engen’s legal costs.
“Apart from the qualm of the alleged improper service, the applicant (Eco-Fuel) was silent on any defence to the merits of the monetary claim," the judge ruled.
One month ago, Eco Fuel challenged a court order allowing Engen to seize its property, arguing that the summons was served at their old Buffalo Signs address on Werner List Street, despite Engen allegedly being aware that the company had moved.
The ruling finalises Engen’s claim against Eco Fuel, whose directors – Austin Elindi and Malima – are also implicated in the ongoing Namcor-Enercon fuel scandal.
With the application dismissed, Engen is entitled to recover the debt, interest at 20% per annum from 4 June 2024, and legal costs.
Breached contract
Court records show that Eco Fuel purchased over 396 000 litres of fuel from Engen between 21 July and 11 August 2021, totalling N$5.4 million.
While payment was initially due immediately upon delivery, the parties later agreed verbally to extend the payment period to 30 days post-invoice.
Engen alleges that Eco Fuel failed to honour the agreement, despite receiving repeated deliveries throughout 2021. Formal payment demands sent in April and May 2024 went unanswered.
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Eco-Fuel had claimed the documents were delivered incorrectly, as the company had moved offices.
Judge Orben Sibeya dismissed Eco Fuel’s application to rescind the default judgment and ordered the company to pay Engen’s legal costs.
“Apart from the qualm of the alleged improper service, the applicant (Eco-Fuel) was silent on any defence to the merits of the monetary claim," the judge ruled.
One month ago, Eco Fuel challenged a court order allowing Engen to seize its property, arguing that the summons was served at their old Buffalo Signs address on Werner List Street, despite Engen allegedly being aware that the company had moved.
The ruling finalises Engen’s claim against Eco Fuel, whose directors – Austin Elindi and Malima – are also implicated in the ongoing Namcor-Enercon fuel scandal.
With the application dismissed, Engen is entitled to recover the debt, interest at 20% per annum from 4 June 2024, and legal costs.
Breached contract
Court records show that Eco Fuel purchased over 396 000 litres of fuel from Engen between 21 July and 11 August 2021, totalling N$5.4 million.
While payment was initially due immediately upon delivery, the parties later agreed verbally to extend the payment period to 30 days post-invoice.
Engen alleges that Eco Fuel failed to honour the agreement, despite receiving repeated deliveries throughout 2021. Formal payment demands sent in April and May 2024 went unanswered.
[email protected]
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