Meikles suffers court setback in bid to overturn $3,6 million judgment

Meikles suffers court setback in bid to overturn $3,6 million judgment
Published: 26 February 2019 (274 Views)
High Court judge Justice Nicholas Mathonsi has dismissed an application to rescind a judgment compelling Meikles to pay over $3,6 million owed to the Infrastructural Development Bank of Zimbabwe (IDBZ).

According to the court papers, in 2016 Meikles Limited consented to an order being made in IDBZ's favour for the payment of the debt, but later Meikles said it realised it had a defence to offer in the claim, hence it wanted a rescission of the same judgment.

The listed conglomerate argued that government, which is indebted to Meikles, should settle the company's debt to the IDBZ.

The government debt, which is in the region of $42 million, arose after it assumed all the debts of the Reserve Bank of Zimbabwe (RBZ), including one owed to Meikles after the central bank raided individual and corporate foreign currency accounts to finance the numerous farmer-support schemes the bank embarked on during the tenure of former governor Gideon Gono.

But the court said IDBZ was a distinct separate personality from the government of Zimbabwe in that it had a total of ten shareholders, including foreign companies like the Finnish Fund for Industrial Co-operation, the German Investment and Development Company, the Netherlands Development Finance Company and the European Investment Bank.

In his judgment, Justice Mathonsi castigated the conglomerate for its application, saying its proposed defence of indemnity "appears to be a pie in the sky".

"Does the applicant have a leg to stand on regarding the indemnity argument as to motivate a rescission of the order? I think not," he said.

"In my view, this is a case in which the applicant (Meikles) ought to have known that there was absolutely no merit in the application, even before the making of it.

"It is such a frivolous and, indeed, vexatious application as to amount to an abuse of process. This is particularly so, regard being heard that after consenting to judgment, the applicant only waited until the day of execution to engage in this misadventure, thereby frustrating the pursuit of a legitimate claim while buying time. The fruit of such a misadventure is an award of costs on an adverse scale. In the result, the application is dismissed with costs on a legal practitioner and client scale."

"Therefore, by the time the applicant was issued in HC9880/15 and later consented to judgment, all the facts that it proposes to rely upon in its newly found defence already existed. They are facts which it reasonably was expected to be aware of, especially as the respondent is a statutory corporation. This is not a case in which I can exercise my discretion in favour of the applicant," Justice Mathonsi said before dismissing Meikles's matter.

- newsday

Tags: Meikles, Setback, Court,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

PHOTOS: Job Sikhala becomes an instant internet joke

by Social media | 03 October 2019 | 278 Views

America says it is worried about Zimbabwe

by Mandla Ndlovu | 03 October 2019 | 312 Views

Madinda Ndlovu to be discharged tomorrow

by Staff reporter | 03 October 2019 | 215 Views

What are behavioral disorders and how can they be managed?

by Temba Munsaka | 03 October 2019 | 213 Views

Government speaks on Robert Mugabe's body parts

by Mandla Ndlovu | 03 October 2019 | 312 Views

Zacc recovers $100m property from looters

by Staff reporter | 03 October 2019 | 212 Views

WATCH: Mnangagwa apologises for destroying Zimbabwe satire

by Mandla Ndlovu | 03 October 2019 | 210 Views

Mphoko's application for release of passport dismissed

by Staff reporter | 03 October 2019 | 170 Views

Zanu-PF restructuring exercise begins

by Staff reporter | 03 October 2019 | 166 Views

Petrotrade declares $1.5 million dividend

by Staff reporter | 03 October 2019 | 137 Views

MSU, Zupco seal bus deal

by Staff reporter | 03 October 2019 | 257 Views

Mnangagwa to open ZMF conference

by Staff reporter | 03 October 2019 | 175 Views

High Court sets EcoCash hearing date

by Staff reporter | 03 October 2019 | 180 Views

Mphoko barred from leaving Zimbabwe

by ZimLive | 03 October 2019 | 176 Views

CIO agents monitor Jonathan Moyo in Kenya

by Mandla Ndlovu | 03 October 2019 | 395 Views

Acie Lumumba targets criminals around Mnangagwa

by Mandla Ndlovu | 03 October 2019 | 342 Views

$100 limit for cash-out transactions

by Staff reporter | 03 October 2019 | 253 Views

ANC starts anti-sanctions campaign

by Staff reporter | 03 October 2019 | 178 Views

ZESN calls for political parties regulation

by Staff reporter | 03 October 2019 | 152 Views

We've no forced labour evidence on Zimbabwe diamonds, says US Embassy

by Staff reporter | 03 October 2019 | 165 Views

Ex-ZPC board chairman freed on bail

by Staff reporter | 03 October 2019 | 197 Views

Cyber Bill seeks to safeguard citizens

by Staff reporter | 03 October 2019 | 136 Views

Cassava launches Vaya tractor services

by Staff reporter | 03 October 2019 | 177 Views

MDC Alliance boycott slammed

by Staff reporter | 03 October 2019 | 94 Views

10-man Bulawayo Chiefs stun Harare City

by Staff reporter | 03 October 2019 | 143 Views

Zimbabwe has a reputational problem, says US

by newzimbabwe | 03 October 2019 | 157 Views

MDC Alliance walk of shame

by Nduduzo Tshuma | 03 October 2019 | 216 Views

MDC councillors want suspension of Cowdray Park projects

by Staff reporter | 03 October 2019 | 145 Views

RBZ floats $300m additional TBs

by Staff reporter | 03 October 2019 | 134 Views

Teenagers rob soldier

by Staff reporter | 03 October 2019 | 156 Views

Duo rape corpse, get death sentence

by Staff reporter | 03 October 2019 | 172 Views

Mnangagwa to fly out for the zenith times

by Staff reporter | 03 October 2019 | 137 Views

Chamisa's MPs approach court to reverse 5 months allowance garnish

by newzimbabwe | 03 October 2019 | 76 Views

Zimra official forges Customs papers

by Staff reporter | 03 October 2019 | 61 Views

Zifa courts two nations for Warriors' friendlies

by Staff reporter | 03 October 2019 | 50 Views