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HH302-14 - AMOROSE INVESTMENTS (PRIVATE) LIMITED (in liquidation) vs NORWICH TRADING (PRIVATE) LIMITED

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Procedural Law-viz citation re party with a legal interest in the matter.
Procedural Law-viz citation re joinder iro Rule 87.
Procedural Law-viz rules of court re High Court Rules iro Rule 87.
Procedural Law-viz High Court Rules re Rule 87 iro joinder.
Procedural Law-viz citation re joinder iro oral application for joinder to proceedings.

Citation and Joinder re: Approach, the Joinder of Necessity and Third Party Notices

The Liquidator, Dr. Wesley Simbi Sibanda, of the applicant company in the main case of Amorose Investments (Private) Limited (in liquidation), is making an urgent chamber application against the respondent company, Norwich Trading (Private) Limited for an interim order in the following terms:

TERMS OF FINAL ORDER SOUGHT

That you show cause to this Honourable Court why a final order should not be made in the following terms:-

1. The assets listed in the attached schedule, Annex C, shall be delivered to the liquidator of Applicant.

2. Respondent shall pay the sum of US$31,000= together with interest a temporae morae at the prescribed rate until the date of final payment.

3. Respondent pays the costs.

INTERIM RELIEF GRANTED

Pending confirmation or discharge of the provisional order, the Applicant is granted the following relief:

a) The Sheriff or his authorised deputy is hereby empowered, directed and ordered to take possession of Assets listed in the attached schedule, Annex C, wherever they may be situate and deliver them to Spraytech (Private) Limited at 12 Nuffield Road Workington, Harare for safe custody.

SERVICE OF THE PROVISIONAL ORDER

The Provisional Order may be served by Applicant's legal practitioners or any person in their employ or by Sheriff of the High Court.

…,.”

The assets in question are alleged to belong to the applicant company.

At the hearing of the application, on 4 June 2014, at 1430hrs, the respondent company was in default, despite having been duly and properly served with the notice of hearing.

Before the court could hear any submissions from counsel for the applicant company, Mr T R Mugabe who appeared with one Mr Mnaba made any oral submission that Mr Mnaba be joined as a party to the proceedings. Mr T R Mugabe thus made an oral application to have Mr Mnaba joined as a respondent, since, among other things, Mr Mnaba is in physical possession of the assets in question, hence he has a legal interest in the matter.

The application to have Mr Mnaba joined as a party was opposed by counsel for the applicant. Among other things, counsel for the applicant's contention was that Mr Mnaba had no locus standi, and that if he wanted to be joined as a party he has to make a formal application, and, if it is granted, his side of the story can be heard when the provisional order comes up for confirmation.

Applications for joinder are done in terms of Order 13 Rule 85 to Rule 87 of the High Court Rules, 1971. In particular, Rule 87 is very relevant. It says:-

“87. Misjoinder or nonjoinder of parties

(1) No cause or matter shall be defeated by reason of the misjoinder or nonjoinder of any party and the court may, in any cause or matter, determine the issues or questions in dispute so far as they affect the rights and interests of the persons who are parties to the cause or matter.

(2) At any stage of the proceedings, in any cause or matter, the court may, on such terms as it thinks just, and either of its own motion or on application –

(a) Order any person who has been improperly or unnecessarily made a party or who has for any reason ceased to be a proper or necessary party, to cease to be a party;

(b) Order any person who ought to have been joined as a party or whose presence before the court is necessary to ensure that all matters in dispute in the cause or matter may be effectually and completely determined and adjudicated upon, to be added as a party;

But, no person shall be added as a plaintiff without his consent, signified in writing, or in such other manner as may be authorised.

(3) A court application by any person for an order under subrule (2) adding him as a defendant, shall, except with the leave of the court, be supported by an affidavit showing his interest in the matters in dispute in the cause or matter.”

Rule 87(3) therefore specifically deals with the joinder of a defendant or respondent as the case might be. Such an application has to be supported by an affidavit showing the applicant's interest in the matters in dispute in the cause or matter.

In my view, and in terms of the Rules, the party that seeks to be joined as a defendant or respondent, as the case might be ought to make a formal court application, which shall be supported by an affidavit showing his or her interests in the matters in dispute in the cause or matter.

I feel that the oral submissions by Mr T R Mugabe are not sufficient for this court to allow a joinder of Mr Mnaba at this stage.

Since the main application by the Liquidator is not for a final order for disposal of the assets in question, but for a temporary order for their safe-keeping pending confirmation of the order, Mr Mnaba will not suffer any prejudice if an order is granted in favour of the applicant company. Mr Mnaba can still be joined as a party once a formal application has been made and granted.

In the circumstances, the court is not inclined to allow a joinder of Mr Mnaba as a party in the proceedings at this stage. While Mr Mnaba has been allowed to express his interest in the matter, he is not properly before the court and cannot be heard any further until his application for joinder has been granted.

The oral application for joinder is therefore refused.

APPLICATION FOR JOINDER

TAGU J: The liquidator Dr. Wesley Simbi Sibanda of Applicant Company in the main case of Amorose Investments (Private) Limited (in liquidation) is making an urgent chamber application against the Respondent Company Norwich Trading (Private) limited for an interim order in the following terms: 

TERMS OF FINAL ORDER SOUGHT

That you show cause to this Honourable Court why a final order should not be made in the following terms:-

1.      The assets listed in the attached schedule, Annex C, shall be delivered to the liquidator of Applicant.

2.      Respondent shall pay the sum of US $ 31 000.00 together with interest a temporae morae at the prescribed rate until the date of final payment.

3.      Respondent pays the costs.

INTERIM RELIEF GRANTED

Pending confirmation or discharge of the provisional order, the Applicant is granted the following relief:

a)      The Sheriff or his authorised deputy is hereby  empowered, directed and ordered to take possession of Assets listed in the attached schedule, Annex C, wherever they may be situate and deliver them to Spraytech (Private) Limited at 12 Nuffield Road Workington, Harare for safe custody.

SERVICE OF THE PROVISIONAL ORDER

The Provisional order may be served by Applicant's legal practitioners or any person in their employ or by Sheriff of the High Court.

………………………………..”

The Assets in question are alleged to belong to the Applicant Company.

At the hearing of the application on 4 June 2014 at 1430hrs the Respondent Company was in default, despite having been duly and properly served with the notice of hearing.

Before the court could hear any submissions from Mr D Mbidzo on behalf of the Applicant Company, Mr T R Mugabe who appeared with one Mr Mnaba made any oral submission that Mr Mnaba be joined as a party to the proceedings. Mr T R Mugabe thus made an oral application to have Mr Mnaba joined as a Respondent, since among other things Mr Mnaba is in physical possession of the Assets in question, hence he has a legal interest in the matter.

The application to have Mr Mnaba joined as a party was opposed by Mr D Mbidzo who appeared on behalf of the applicant. Among other things Mr Mbidzo's contention was that Mr Mnaba had no lucus standi and that if he wanted to be joined as a party he has to make a formal application, and if it is granted,  his side of the story can be heard when the provisional order comes up for confirmation.

Applications for joinder are done in terms of Order 13 r 85 to r 87 of the High Court Rules, 1971.

In particular r 87 is very relevant. It says:-

      “87. Misjoinder or nonjoinder of parties

(1)   No cause or matter shall be defeated by reason of the misjoinder or nonjoinder of any party and the court may in any cause or matter determine the issues or questions in dispute so far as they affect the rights and interests of the persons who are parties to the cause or matter.

 

(2)   At any stage of the proceedings in any cause or matter the court may on such terms as it thinks just and either of its own motion or on application –  

(a)    order any person who has been improperly  or unnecessarily made a party or who has for any reason ceased to be a proper or necessary party, to cease to be a party; 

(b)   order any person who ought to have been joined as a party or whose presence before the court is necessary to ensure that all matters in dispute in the cause or matter may be effectually and completely determined and adjudicated upon, to be added as a party;

but no person shall be added as a plaintiff without his consent signified in writing or in such other manner as may be authorised.

(3)   A court application by any person for an order under subrule (2) adding him as a defendant shall, except with the leave of the court, be supported by an affidavit showing his interest in the matters in dispute in the cause or matter.” 

Subrule 3 of r 87 therefore specifically deals with the joinder of a defendant or respondent as the case might be. Such an application has to be supported by an affidavit showing the applicant's interest in the matters in dispute in the cause or matter.

In my view, and in terms of the rules the party that seeks to be joined as a defendant or respondent, as the case might be ought to make a formal court application, which shall be supported by an affidavit showing his or her interests in the matters in dispute in the cause or matter.

I feel that the oral submissions by Mr T R Mugabe are not sufficient for this court to allow a joinder of Mr Mnaba at this stage.

Since the main application by the Liquidator is not for a final order for disposal of the Assets in question, but for a temporary order for their safe keeping pending confirmation of the order, Mr Mnaba will not suffer any prejudice if an order is granted in favour of Applicant Company. Mr Mnaba can still be joined as a party once a formal application has been made and granted.

In the circumstances the court is not inclined to allow a joinder of Mr Mnaba as a party in the proceedings at this stage. While Mr Mnaba has been allowed to express his interest in the matter, he is not properly before the court and cannot be heard any further until his application for joinder has been granted. The oral application for joinder is therefore refused. 

  

Mbidzo Muchadehama & Makoni, applicant's legal practitioners
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