PSMI ordered out of Harare premises over rent arre...

PSMI ordered out of Harare premises over rent arrears

Zim Now Writer

Cash-strapped Premier Service Medical Aid Society subsidiary, Premier Service Medical Investments, has been ordered to vacate rented premises in Harare’s central business district over rent arrears of US$684 298.

PSMI was dragged to court recently by a local real estate company, Gilchrist and Cooksey Private Limited after efforts to get the money failed.

High Court judge David Mangota upheld the company’s request ordering PSMI to clear the arrears.

“The respondent or anyone who claims occupation through it is and is hereby ordered to vacate from property No. 29B of Cnr Speke Avenue/ J. Nyerere Way within 48 hours of this order.

“Failure of which, the Sheriff of the High Court is hereby directed to evict the respondent.

“The respondent be and is hereby ordered to pay the applicant the sum of US$676 86 or equivalent at interbank rate on the date of payment being arrears due to plaintiff from January 2022 to December 2022.

“The respondent be and is hereby ordered to pay the sum of $799 089 being council rates due from January 2022 to December 2022 for the said property,” reads a recent court order.

Gilchrist and PSMI, according to court papers, entered into a lease agreement on July 1, 2021 for a property commonly known as Kingsway House in Harare.

Parties agreed that the lease would expire on December 31, 2022 and that the monthly rentals would be pegged at US$5 438 and the lessee would pay the council rates that were determined by the city council every month.

Gilchrist filed summons at the High Court in March this year, accusing PSMI of refusing to move out of the property even after the lease agreement had expired.

“At the time of the expiry of the lease agreement, Defendant is in rental arrears and council rates. The defendant is in arrears as at December 2022 of US$67 686 and Council rates in the sum of $799 089.

“The Respondent, despite having knowledge of the lease agreement having expired or terminated by effluxion of time and not having been renewed, refused to vacate from the premises as well as failing to pay the monthly rentals.

“The applicant is therefore entitled to holding over damages in the sum of US$5 438 equivalent to monthly rentals per month from January 2023 to date of eviction from the property as well as council rate due at the time of eviction.”

In its application, Gilchrist sought an eviction order against the company, claiming that PSMI had refused to move out despite receiving several demands.

The company also demanded payment of arrears that it owed for rent and the council rates, a request that was also granted.

The judge also ordered PSMI to pay holding over damages in the sum of US$5 438 per month from January 2023 to the date of eviction.

PSMI is also supposed to pay the other outstanding council rates from January 2023 to the date of eviction.

PSMI has been struggling to meet its operational costs, including staff salaries, for some time and government has been forced to come up with interventions from time to time.