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HB57-09 - TRYSON INVESTMENTS vs MAPLE LEAF MINING (represented by Cecil Madondo N. O.) and MINING COMMISSIONER

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Procedural Law-viz provisional order re disposal of mining claims.

Procedural Law-viz interim interdict re disposal of mining claims.
Mining-viz mining claims.
Mining-viz Tribute Agreement.
Corporate Law-viz corporate insolvency re liquidation.
Law of Contract-viz termination of contract re provisional order prayer.
Law of Contract-viz cancellation of agreement re interim interdict prayer.
Law of Contract-viz  essential elements re misrepresentation.
Mining-viz Tribute Agreement re  section 284 of the Mines and Minerals Act [Chapter 21:05].
Procedural Law-viz urgency re certificate of urgency.
Procedural Law-viz founding affidavit re urgency.
Mining-viz mining disputes re domestic remedies.
Administrative Law-viz Mining Commissioner re domestic remedies iro mining disputes.
Law of Contract-viz dispute resolution clause re exhaustion of domestic remedies.
Procedural Law-viz rules of construction re contractual term iro the word "shall".
Procedural Law-viz rules of interpretation re peremptory term iro the word "shall".

Mining Law

The applicant seeks a relief in the following terms:-

Terms of the final order sought

1. That pending the resolution of the dispute concerning mining claims listed in the Tribute Agreement, in terms of the law, this first respondent be interdicted from disposing the concerned mining claims in any way.

2. That pending the resolution of the dispute between the applicant and the first respondent, second respondent be interdicted from facilitating any transaction in respect of the mining claims concerned between first respondent and any third party.

Interim relief

1. The first respondent be and is hereby interdicted from disposing in any way the mining claims listed in the Tribute Agreement between it and applicant until the dispute is resolved in terms of the law.

2. The second respondent be and is hereby interdicted from facilitating any transactions involving the mining claims between first and any third party.

3. First respondent be and is hereby ordered to allow applicant to put security personnel at the disputed mining claims until the dispute is resolved.”

The salient facts of this matter are the following.

The first respondent is a company in liquidation, represented by Mr. Cecil Madondo in his official capacity as the company's liquidator.

On 12 March 2009, the applicant entered into an agreement, known as a Tribute Agreement in the mining world. The liquidator represented the first respondent in this Agreement. The Tribute Agreement gave the applicant mining rights over mining claims listed in the Agreement for a period of three years. The main mineral covered is gold.

The first respondent has sold the rights in the disputed mining claims to another person.

It is the first respondent's case that it was made clear to the applicant from the onset that for the Tribute Agreement to be consummated it was required of it to pay the requisite inspection fees to the second respondent. The applicant misrepresented to the first respondent that it had paid the fees when in fact that was not so.

On that basis, the first respondent decided not to submit the Tribute Agreement to the Mining Commissioner for examination and approval, as required in terms of section 284 of the Mines and Minerals Act [Chapter 21:05].

It is alleged by the first respondent that the said Tribute Agreement is a nullity at law and is not enforceable for non-compliance with section 284 of the Mines and Minerals Act [Chapter 21:05].

Interim Interdict Pendente Confirmation or Discharge Proceedings re: Approach, Return Date and the Prima Facie Concept

On 25 March 2009 Mr. Madondo wrote a letter to the applicant in which the first respondent was purporting to cancel the..., Tribute Agreement.

The applicant challenged the cancellation, and its legal practitioners wrote to the first respondent conveying this. The applicant's legal practitioners also wrote two letters to the second respondent expressing the applicant's legal understanding of the matter.

In these papers, however, the applicant has not specifically challenged the cancellation of the Tribute Agreement. Nothing in the relief sought shows that the cancellation is being challenged. Even in the terms of the final order, the applicant does not seek this court's intervention as regards the legal competency of the Tribute Agreement's cancellation.

Urgency re: Approach iro Time, Consequent and Remedial Alternative Considerations of Urgency

The respondent has raised points in limine which I propose to deal with..., in turn.

Urgency

The certificate of urgency is scant. The founding affidavit is not helpful either. All the applicant states is -

“Applicant fears that should operations continue at the disputed claims it will suffer irreparable harm. Applicant has already invested into the mining claims by undertaking expensive preparatory works.”

To some extent, this is the basis of urgency in the certificate of urgency.

The applicant does not set forth explicitly the circumstances which it avers render the matter urgent, and reasons why it claims that it could not be affected substantial redress at a hearing in due course.

It is trite that specific averments of urgency must be made, and the facts upon which those averments are based must be set out in the founding affidavit and the certificate of urgency – Eniram (Pty) Ltd v New Woodholme Hotel (Pty) Ltd 1967 (2) SA 491 (E); Salt & Anor v Smith 1991 (2) SA 186 (Nm); Sikwe v SA Mutual Fire and General Insurance Co. Ltd 1977 (3) SA 438 (W) and Pickering v Zimbabwe Newspapers (1980) Ltd 1991 ZLR 71 (H).

The applicant has failed in this regard.

On this ground alone this application should fail...,.

Jurisdiction re: Domestic, Internal or Local Remedies

Failure to exhaust domestic remedies

Clause 5(d) of the Tribute Agreement provides -

“Should any dispute arise as regards the interpretation of this agreement, or the enforceability of its clauses, the mining commissioner shall have jurisdiction and, failure him, the High Court.” ....,.

On 8 April 2009, the applicant's legal practitioners wrote requesting for a meeting of the two parties before the Mining Commissioner. Before the matter was set down, or the Mining Commissioner responded, the applicant jumped the gun.

The applicant did not give a reasonable explanation for its failure to exhaust domestic remedies, and as such the application should fail on that score.

From the foregoing, the application cannot be granted because of these procedural deficiencies, i.e. it is not urgent, and, in any event, the applicant has not exhausted domestic remedies contained in clause 5(d) supra.

Accordingly, the application is dismissed with costs.

NDOU J:        The applicant seeks a relief in the following terms:

            “Terms of the final order sought

1.      That pending the resolution of the dispute concerning mining claims listed in the Tribute Agreement, in terms of the law, this first respondent be interdicted from disposing the concerned mining claims in any way.

2.      That pending the resolution of the dispute between applicant and first respondent, second respondent be interdicted from facilitating any transaction in respect of the mining claims concerned between first respondent and any third party.

 

Interim relief

 

1.                  The 1st respondent be and is hereby interdicted from disposing in any way the mining claims listed in the Tribute Agreement between it and applicant until the dispute is resolved in terms of the law.

2.                  The second respondent be and is hereby interdicted from facilitating any transactions involving the mining claims between first and any third party.

3.                  First respondent be and is hereby ordered to allow applicant to put security personnel at the disputed mining claims until the dispute is resolved.”

 

The salient facts of this matter are the following.  The 1st respondent is a company in liquidation represented by Mr Cecil Madondo in his official capacity as the company's liquidator.  On 12 March 2009 applicant entered into an agreement known as a Tribute Agreement in the mining world.  The liquidator represented the 1st respondent in this agreement.  The Tribute Agreement gave the applicant mining rights over mining claims listed in the agreement for a period of 3 years.  The main mineral covered is gold.  On 25 March 2009 Mr Madondo wrote a letter to the applicant in which the 1st respondent was purporting to cancel the abovementioned Tribute Agreement.  The applicant challenged the cancellation and its legal practitioners wrote to the 1st respondent conveying this.  The applicant's legal practitioners also wrote two letters to the 2nd respondent expressing the applicant's legal understanding of the matter.  In these papers, however, the applicant has not specifically challenged the cancellation of the Tribute Agreement.  Nothing in the relief sought shows that the cancellation is being challenged.  Even in the terms of the final order, the applicant does not seek this court's intervention as regards the legal competency of the tribute agreement's cancellation.  The 1st respondent has sold the rights in the disputed mining claims to another person.  It is the 1st respondent's case that it was made clear to the applicant from the on set that for the tribute agreement to be consummated, it was required of it to pay the requisite inspection fees to the 2nd respondent.  The applicant misrepresented to the 1st respondent that it had paid the fees when in fact that was not so.  On that basis, the 1st respondent decided not to submit the tribute agreement to the Mining Commissioner for examination and approval as required in terms of section 284 of the Mines and Minerals Act [Chapter 21:05].  It is alleged by the 1st respondent that the said Tribute Agreement is nullity at law and is not enforceable for non-compliance with section 284.  The respondent raised points in limine which I propose to deal with these in turn.

Urgency          -           The certificate of urgency is scant.  The founding affidavit is not helpful either.  All the applicant states is:

“applicant fears that should operations continue at the disputed claims it will suffer irreparable harm.  Applicant has already invested into the mining claims by undertaking expensive preparatory works.”

           

To some extent this is the basis of urgency in the certificate of urgency.  The applicant does not set forth explicitly the circumstance which it avers render the matter urgent and the reasons why it claims that it could not be afforded substantial redress at a hearing in due course.  It is trite that specific averments of urgency must be made and the facts upon which those averments are based must be set out in the founding affidavit and the certificate of urgency – Eniram (Pty) Ltd v New Woodholme Hotel (Pty) Ltd 1967(2) SA 491(E); Salt & Anor v Smith 1991(2) SA 186 (Nm); Sikwe v SA Mutual Fire and General Insurance Co Ltd 1977(3) SA 438(W) and Pickering v Zimbabwe Newspapers (1980) Ltd 1991 ZLR 71 (H).  The applicant has failed in this regard.  On this ground alone this application should fail.  In the event that I am mistaken on this ground I will consider the second point.

Failure to exhaust domestic remedies

            Clause 5(d) of the tribute agreement provides:

“Should any dispute arise as regards the interpretation of this agreement or the enforceability of its clauses the mining commissioner shall have jurisdiction, and failure him, the High Court of Zimbabwe.” (Emphasis added)

           

On 8 April 2009 the applicant's legal practitioners wrote requesting for a meeting of the two parties before the Mining Commissioner.  Before the matter was set down or the Mining Commissioner responded the applicant jumped the gun.  The applicant did not give a reasonable explanation for its failure to exhaust domestic remedies and as such the application should fail on that score.

            From the foregoing the application cannot be granted because of these procedural deficiencies i.e. it is not urgent and in any event, the applicant has not exhausted domestic remedies contained in clause 5(d), supra.

            Accordingly, the application is dismissed with costs.

 

 

 

Gundu & Mawire c/o Dazinger & Partners, applicant's legal practitioners

Muringi Kamdefwere, 1st respondent's legal practitioners

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