J.A Sakala v Zambia Co-operative Federation Ltd (Appeal 129 of 1999) [2001] ZMSC 139 (12 April 2001)

APPEAL NO. 129 OF 1999 IN THE SUPREME COURT OF ZAMBIA HOLDEN AT LUSAKA (CIVIL JURISDICTION) BETWEEN: J. A. SAKALA V Appellant ZAMBIA CO-OPERATIVE FEDEREATION LIMITED Respondent CORAM: Ngulube, C. J., Chirwa and Chtbesakunda JJS on 3oth May 2000 and 12th April 20001 For the Appellant: Mr. C. A. J. Njobvu, Christopher Russell Cook & Co. For the Respondent: Mr. K. M. Shepande, Shepande & Co. JUDGMENT Chirwa, J. S. delivered judgment of the Court: - This is an appeal against the learned Deputy Registrar’s assessment of cost of repair to the appellant’s residential house which repairs were necessitated by the respondent’s damage to it and during its occupancy. There was a consent judgment as to liability and during the assessment of damages the learned Deputy Registrar accepted the quotation presented by the appellant from Zenith Construction Limited as it was detailed. The total quotation was K71,175,177.00 (seventy-one million, one hundred and seventy-five thousand, one hundred and seventy-seven kwacha) During assessment the Deputy Registrar disallowed some items, which items were specifically estimated like all other items and works. The total cost of the disallowed items and works came to K43,217,705.00 : J2 : (forty-three million, two hundred and seventeen thousand, seven hundred and five kwacha). If this sum is deducted from the total quotation of K71,175,177-00 it leaves a balance of K27,957,472-00 (twenty-seven million, nine hundred and fifty-seven thousand, four hundred and seventy-two kwacha) and not K16,781,347-00 (sixteen million, seven hundred and eighty-one thousand, three hundred and forty-seven kwacha) as found by the Deputy Registrar. There was therefore a mathematical error. We would therefore set aside the K16,781,347- 00 awarded by the Deputy Registrar and in its place give K27,957,472-00. To this figure is added three (3) months rent at K660,000-00 (six hundred and sixty thousand kwacha) per month which come to K1,980,000-00 (one million, nine hundred and eighty thousand kwacha). The total award is therefore K29,932,427-00. We therefore allow the first ground of appeal. The second ground of appeal is against the award of 6% (six percent) interest from the date of issue of the writ to date of payment “in view of the length of time that has elapsed since the matter was commenced”. In arguing this ground, it was submitted that although the question of interest is discretionary, the same should be exercised judiciously. In the present case, it was submitted that the award was made on wrong principle that the matter had taken too long since it was commenced when the record shows that it was not the fault of the appellant. It was submitted further that this Court could set aside this award as the learned Deputy Registrar misapplied the law. On the other hand, it was submitted on behalf of the respondent that the rate of interest of 6% was correctly awarded as no error has been shown. We have considered this second ground of appeal. We entirely agree with Counsel for the appellant that the award of interest at 6% was wrong in principle. This Court has given guidance on this point before. Interest, if awarded, is in two portions. One is from date of the writ to date of judgment. The second is from date of judgment to date of payment. We therefore set aside the 6% interest : J3 : awarded in its place we award average short term deposit rate from the date of the writ to date of judgment and thereafter until payment, at the current lending rate. This appeal is therefore allowed as indicated. Costs to the appellant to be taxed in default of agreement. M. M. S. W. Ngulube CHIEF JUSTICE D. K. Chirwa SUPREME COURT JUDGE L. P. Chibesakunda SUPREME COURT JUDGE