It has been almost two years since a rice farming family filed a lawsuit against Mahaicony Rice Ltd for $39 million owing for paddy supplied, but the company denies the indebtedness and has accused the family of attempting to defraud the High Court.

The trial is ongoing before Justice Rishi Persaud at the Commercial Court and witnesses continue to take the stand to testify. The plaintiffs named in the case are rice farmer Monieram Persaud and five members of his immediate family. Monieram Persaud said he was promised the money for paddy delivered to the company for a period in 2008, but the company has “concocted various excuses in an effort to avoid payment of the outstanding sums due and owing, all of which are without merit”.

Monieram Persaud, who is represented by Attorney-at-law Jailall Kissoon in association with others, has submitted copies of paddy receipt notes to the court reflecting the amount he is claiming. The farmer said in court documents that several demands were made for payment without relief and that letters were also sent off to the company, but to no avail.

But General Manager of Mahaicony Rice Ltd Brandon Barton filed an affidavit in response in which he denied the claims by Monieram Persaud. He said the company is not indebted to the farmer and his family and contended that paddy was not supplied in the amount they are claiming for. Barton said too that the claims have been the subject of a police investigation.

Further, he said the group was attempting to perpetuate fraud on the court. Barton said there are no records in the security log books of the company to confirm delivery and the plaintiffs never signed the log book which is the usual practice. He charged that they colluded with persons to produce fraudulent invoices during the period mentioned resulting in huge losses and the company intends to counterclaim for the losses. In addition, he said that to the best of his knowledge, the plaintiffs do not possess lands to produce the amount of paddy claimed.

However, Monieram Persaud said Mahaicony Rice requested the paddy between April 3, 2008 and May 20, 2008 and 76 truck loads of paddy were supplied. He submitted a document showing dates and amounts of paddy delivered and the value. He said the company paid out some $17 million initially for paddy delivered. However, a substantial amount was outstanding.

Persaud said he cultivates paddy and also supplies fertilizer to farmers on a credit basis. The farmer said he is paid in paddy for fertilizer supplied to other farmers. “We are paid in paddy by farmers for the fertilizer supplied, harvesting and transportation is approximated and quantified and the equivalent value in paddy is provided to me in my name at the factory.”

He said that on some occasions a person is present at the gate at Mahaicony Rice Ltd with a book for them to sign when making a delivery, and that in other instances when there is no gate person they would drive in at the appropriate time when requested.

He explained the process when the paddy is delivered saying that among other things a sample would be taken and the paddy is weighed. Persaud said the paddy he delivers to the company is put into the names of various members of his family. This, he said, is done because the mill only pays a small amount to each individual farmer during the delivery period for paddy supplied while the reminder and the bulk of the money is paid after a lengthy delay.

“…To avoid the inconvenience and harshness of this protracted delay I put paddy into the names of various members of my family, the other plaintiffs herein, so that I can receive five different sums as the initial payment rather that a single sum as would be the case if all of the paddy were delivered in my name solely,” Persaud said.

He said the company refused to pay for the 76 bags of paddy delivered and that the initial excuse offered was that the Guyana Revenue Authority was indebted to Mahaicony Rice in the sum of $100 million. He said too that the company also had its licence suspended by the government while he was still awaiting payment.

Mahaicony Rice is represented by attorneys-at-law R. N Poonai and S. J Poonai.