Huge Cellular and its parent company Huge Telecom recently filed an interdict against Cell C over the renewal of a supply agreement with the company.
Cell C had a supply agreement with Huge Cellular which was not extended by both parties, and is subsequently set to be suspended at the end of this month.
Huge Cellular is attempting to prevent this suspension, however, arguing that Cell C is obliged to provide it with an accumulated number of minutes following the termination of the contract – up until February 2022.
The company also said that the suspension of services provided by Cell C would leave 16,000 of its users without connectivity.
Huge Group released a statement to shareholders regarding the interdict, stating that it was confident in the successful outcome of the proceedings.
“Shareholders are advised that an article has appeared in the media in terms of which subsidiaries of the company are cited as applicants in legal proceedings with a supplier,” the company said.
“The litigation has yet to be determined by the court. Huge is not in a position to comment on the litigation nor the content of the media publication in question.”
“The board of directors of Huge remains confident in the successful outcome of the litigation it is pursuing.”
Cell C affidavit
Cell C recently argued that the interdict filed by Huge Group had no merit, and has now filed an affidavit with the Johannesburg High Court stating its position.
In the document, Cell C wholesale business chief executive Bjorn Flormann called Huge Group’s actions “contrived”.
“The cause of action relied upon by Huge is contrived and designed not to avoid any unlawfully threatened harm, but rather to attempt to claw back the proceeds of the alleged overpayments it has made in terms of the ESA (Enterprise Supply Agreement) to Cell C SP during the existence of the ESA,” the affidavit read.
“The real cause of Huge’s predicament is its election not to extend the ESA as it had agreed to do in October 2018, coupled with the failure of its management to take any steps at all to prepare for the pending termination of the ESA on 28 February 2019.
In terms of the minutes to be rolled over, Flormann said these were a monthly carryover and did not accumulate to provide a shortfall that could be carried over beyond the termination of the agreement.
However, Cell C said it would continue to provide services to customers of Huge Telecom after the termination of the agreement, but only if the company adhered to the terms and conditions of the agreement.