Urgent
chamber application
MAWADZE
J:
This
is an urgent chamber application in which the applicant seeks interim
relief in the following terms;
“INTERIM
RELIEF GRANTED
Pending
the confirmation or discharge of the Provisional Order, the applicant
is granted the following interim relief;
1.
The execution of the writ issued under Case No. HC10108/13 be and is
hereby stayed pending the finalisation of this matter.”
The
terms for the final order sought are couched as follows;
“TERMS
OF THE FINAL ORDER
1.
It is hereby declared that property and assets of the State are
immune from the process of judicial attachment by virtue of the
provisions of section 5 of the State Liabilities Act [Cap
8:14].
2.
It is hereby further declared that the property and assets appearing
hereunder are property and assets of the State, and consequently
should be released from judicial attachment they were placed under by
the 3rd
respondent acting pursuant to a writ of execution issued in case No.
HC10108/13 on 20 May 2014, on which Notice of Seizure and Attachment
was issues on17th February 2015, that is to say;
2.1
ABT 8829 Isuzu – white Reg 3228.
2.2
ADF 3648 Toyota Hilux- ABH 5021.
2.3.
Land Rover Discovery – ACH 1225.
2.4.
Mazda Swaraj, staff bus T3500-CCH 06.
2.5.
Mazda Swaraj staff bus T3500-CCH 02.
2.6.
Mazda Swaraj staff bus T3500.
2.7.
Tata Mini Bus 1391 GHCW.
3.
First respondent to pay the cost of suit.”
The
appellant is a Government hospital. In terms of section 18(1) of the
Health Service Act [Chapter
15:16]
it is capable of being sued and suing in its own right. The relevant
section 18(1) of the Health Service Act provides as follows:
“18
Corporate status of central, provincial, district and general
hospitals
(1)
Subject to subsection (3), each central, provincial, district or
general hospital shall be a body corporate capable of suing and being
sued in its own name and subject to the Act, performing all acts that
bodies corporate may by law perform.”
The
first respondent is duly incorporated company in terms of the laws of
Zimbabwe.
The
second and third respondents being the Registrar of the High Court of
Zimbabwe and the Sheriff of the High Court are cited both in the
official capacities.
The
background facts of this matter are as follows;
The
first respondent instituted proceedings by way of action in
HC10108/13 against the applicant and the applicant apparently did not
enter an appearance to defend. On 12 March 2014 my sister Chigumba J
granted a default judgement in the following terms;
“IT
IS ORDERED THAT;
1.
The defendant be and is hereby ordered to pay the sum of US$74,068-00
to the plaintiff.
2.
The defendant to pay interest at an prescribed rate calculated from
the date of summon to date of payment in full.
3.
Defendant to pay cost of suit.”
After
obtaining the said default judgement the first respondent caused a
writ of execution against the applicant's movable property to be
issued on 20 May 2014, by the second respondent.
Pursuant
to the writ of execution the third respondent on 17 February 2015
issued a notice of removal. The notice of seizure and attachment
dated 17 February 2015 shows that the following motor vehicles were
attached;
(a)
ABT 8229 Isuzu white.
(b)
ABP 3228 Isuzu.
(c)
ABH 5021 Isuzu.
(d)
ADF 3648 Toyota Hilux.
(e)
Staff bus Swaraj Mazda T3500 CCH 06.
(f)
Staff bus Swaraj Mazda T3500.
(g)
Tata mini bus 1391 GHCW.
(h)
Land Rover Discovery 4 ACH 1225.
The
removal date of the attached property was 20 February 2015 but the
third respondent through a letter dated 5 March 2015 filed of record
indicated that the removal of the attached goods has been stopped
pending this outcome of this urgent chamber application which was
issued on 20 February 2015.
As
per the founding affidavit deposed to by the applicant's Chief
Executive Officer one Dr Obadiah Moyo while the applicant does not
deny or dispute liability, the applicant contends that in terms of
section 5 of the State Liabilities Act [Chapter
8:14]
no execution or attachment or process shall be issued against in
State or any property of the State.
The
applicant contends that the correct position of the law is that the
nominal defendant, who should have been cited by the defendant in its
initial claim, is the one which may cause to be paid out of the
Consolidated Revenue Fund such sum of money to satisfy the judgement
or order of this court. The basis of the provisional order sought is
that the property attached listed in the Notice of Seizure and
Attachment is State property.
The
relevant provisions of section 5 of the State Liabilities Act
[Chapter
8:14]
are as follows;
“5
No execution or attachment to be issued, but nominal defendant or
respondent authorised to pay the sum awarded.
(1)…….
not relevant.
(2)
Subject to this section, no execution or attachment or process in
this nature thereof shall be issued against the defendant or
respondent in any action or proceedings referred to in section two or
against any property of the State but the nominal defendant or
respondent may cause to be paid out of the Consolidated Revenue Fund
such sum of money as may, by a judgement or order of this court, be
awarded to the plaintiff, the applicant or the petitioner, as the
case may be.
(3)……..not
relevant.”
The
basis of the provisional order sought is that the property attached
is State property and as such the attachment has been done in breach
of the cited statutory provisions which would render the whole
process or procedure unlawful.
Mr
Muchadehama
for the first respondent took the point in
limine
that this matter is not urgent and on that basis should he dismissed.
See paragraph(s) 3.1 to 3.9 of the first respondent's opposing
affidavit.
In
argument Mr
Muchadehama
submitted that there are a number of reasons as to why this matter
should not be treated as urgent. He submitted that when the default
judgement was granted on 12 March 2014 the applicant who had been
served with summons for the money owed and had not entered an
appearance to defend should have known that judgement against the
applicant would be granted.
Mr
Muchadehama
submitted
that the debt which has been owing as far back as 2012 is
acknowledged and has never been disputed as applicant has absolutely
no defence to offer. In addition to that Mr Muchadehama
said after the default judgement had been granted he wrote, on 20
January 2015, to the applicant, on behalf of the first respondent
advising them of the amount due as per the order of the court.
Mr
Muchadehama
argued
that the writ of execution which was subsequently issued should not
have come as a surprise to the applicant as the applicant ought to
have known that a writ follows judgement. Mr
Muchadehama
submitted that this was also the case since in November 2014 the
first respondent had engaged the applicant on the modalities of
liquidating the judgement debt to no avail.
It
is the first respondent's contention that the applicant after
having been aware of this default judgement as way back as 2014 did
nothing about the matter by either seeking to have this default
judgement set aside or to ensure that no writ is issued. Mr
Muchadehama
submitted that all what the applicant did was to wait until the day
of reckoning arrived when the attachment of the property was done
through the notice of removal on 17 February 2015 as the applicant
only filed this urgent application 3 days later on 20 February 2015.
It is submitted that the applicant only sprung into action because of
this attachment hence the urgency is self-created.
Mr
Muchadehama
concluded by stating that the point in
limine
raised should be upheld and this matter dismissed as applicant has
not been able to overcome this hurdle and has dismainly failed to
explain in the papers filed how the urgency has arisen.
Ms
Honyanyiwa
for the applicant conceded that the sequence of events as submitted
by Mr Muchedahama
is not in issue. She acknowledged the applicant's indebtedness to
the first respondent and that indeed the applicant has been aware as
far back as 2014 of the default judgement. She admitted that efforts
were made to resolve the matter by engaging the first respondent in
2014.
Ms
Honyanyiwa
denied that the applicant did nothing as alleged. She produced
deposit schedules which shows that on 30 May 2014, 10 July 2014, 8
January 2015, 16 February 2015, 23 February 2015 and 26 February 2015
the applicant has made various deposits into first respondent's
Barclays Bank account in a bid to liquidate the debt.
I
however note that the total amount paid in all the deposits is a
paltry $7,531.75 leaving an outstanding balance on the judgement debt
of US$65,536.25.
As
Mr Muchadehama
correctly pointed out such payments were not being done with the
consent or in consultation with the first respondent hence it is too
little too late.
Ms
Honyanyiwa
insisted however that even as late as 24 February 2015 she had
engaged Mr
Muchadehama to
agree on a payment plan and therefore disputes that the applicant has
done nothing about that matter.
Ms
Honyanyiwa
submitted
that the urgency in this matter arose from the fact that the property
attached is not the applicant's property but State property which
State property is immune to judicial execution as provided for in
section 5 of the State Liabilities Act supra.
Ms Honyanyiwa
argued
that the urgency therefore arose when the State property was attached
on 17 February 2015.
She
further produced a number of documents to show that the motor
vehicles in issue do not belong to the applicant but to the State and
that the Master Asset Register of the Ministry of Health shows that
some of the vehicles attached belong to the Ministry.
Mr
Muchadehama
took issue with the fact that these documents were not part of the
founding affidavit.
I
however allowed the applicant to avail them as this is an urgent
application.
What
I have been able to glean from the documents in relation to the
inventory of the vehicles in the Notice of Seizure and Attachment is
as follows;
(a)
The registration book of the Isuzu ABP 3228 shows the owner as the
Ministry of Health.
(b)
The registration book of Toyota mini bus GHCW 1391 shows that the
owner is the Ministry of Health.
(c)
There is prima
facie
evidence that the Land Rover Discovery 4 ACH 1225 was issued by CMED
(Pvt) Ltd to the Ministry of Health as per the vehicle voucher
335525.
(d)
There is also prima
facie
evidence that an Isuzu KB 250 D/TEQ identified by the Government
Registration Number LLD 754 was issued to the Ministry of Health.
(e)
There is a letter dated 3 March 2015 from the Reserve Bank by
Zimbabwe which confirms that a number of vehicles which include inter
alia
buses were issued by the Bank to the Ministry of Health. The
applicant submitted that these vehicles include the three Swaraj
Mazda T3500 staff buses attached by the Sheriff.
What
constitutes urgency in matters of this nature is settled in our law.
See Kuvarega
v
Registrar
General and Anor
1998 (1) ZLR 188 at 193 F (H); Gifford
v Mazarire
& Ors
2007 (2) ZLR 131 (H) at 134 H -135 A.
In
broad and general terms a matter is urgent if;
(a)
it cannot wait the observance of the normal procedures and time
limits prescribed by the rules of this court in ordinary applications
as to do so would render nugatory the relief sought.
(b)
the applicant has treated the matter as urgent by acting timeously
when the need to act arose and if there is any delay good or
sufficient explanation is proffered for such delay.
(c)
the applicant has no other alternative remedy.
(d)
the relief sought is both interim in nature and proper at law.
I
agree with Ms Honyanyiwa
that
the need to act in this manner did not arise in 2014 but arose on 17
February 2015 when the vehicles in issue were attached.
The
urgency arises from the fact that the vehicles attached do not belong
to the judgement debtor being the applicant but is State property
which the applicant believes is protected from judicial attachment
for execution.
The
point in
limine
taken by the first respondent is dismissed for want of merit.
On
the merits of the matter it is common cause that in an application of
this nature interim relief is granted on the basis of a prima
facie
case. It is only on the return date that the issue of granting the
final relief would be determined.
The
question which falls for determination is whether applicant has made
a prima
facie
case to justify in granting of interim relief. Put differently, has
the applicant shown that the attached property is State property
which is immune from judicial attachment as provided for in section
5(2) of the State Liability Act supra.
While
I accept that the applicant has not been able to show why two of the
motor vehicles, that is, Isuzu ABT 8829 white in colour and Toyota
Hilux ADF 3648 are said to be State property, I am satisfied that in
respect of the rest of the motor vehicles the applicant has managed
to establish a prima
facie
case.
From
the papers placed before me at this stage, it is very likely that all
these vehicles attached do not belong to the applicant and were
issued to the applicant by the Ministry of Health to ensure service
delivery to the general public. This property is clearly under siege
and its removal is imminent. The State may be prejudiced if the
vehicles are disposed of at this stage.
Mr
Muchadehama
correctly argued that any third party laying claim to this attached
vehicles should institute interpleader proceedings.
I
am not however persuaded that the availability of such a remedy
precludes the applicant who was the custodian of these vehicles to
seek the interim relief claimed.
I
am satisfied that the applicant has locus
standi in judicio
to seek to protect property which might indeed be State property and
is not capable of execution as provided for in section 5(2) of the
State Liability Act
supra.
Further
while interpleader proceedings may be appropriate in respect of two
of the motor vehicles referred to which may be owned by other third
parties, I understand the applicant to be seeking on the return date
a final order to the effect that the property placed under attachment
is immune to judicial attachment or execution by virtue of section
5(1) of the State Liability Act supra.
It
is for the reasons outlined above that the interim relief prayed for
should be granted.
Accordingly
it is ordered that;
Pending
the confirmation or discharge of the provisional order, the applicant
is granted the following interim relief;
1.
The execution of the writ issued under Case No. HC10108/13 be and is
hereby stayed.
2.
The Provisional Order with all supporting documents shall be served
on the respondents by the applicant's legal practitioners.
Civil
Division of the Attorney General's Office,
applicant's legal practitioners
Mbidzo
Muchadehama & Makoni,
1st
respondent's legal practitioners