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HH52-11 - AMAPLAT MAURITIUS LTD and AMARI NICKEL HOLDINGS ZIMBABWE LTD vs ZIMBABWE MINING DEVELOPMENT CORPORATION and THE CHIEF MINING COMMISSIONER and OTHERS

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Procedural Law-viz urgent chamber application.

Procedural Law-viz postponement of a matter.
Procedural Law-viz recusal.
Law of Property-viz res litigiosa re judicial caveat.
Procedural Law-viz urgent application re urgency.
Procedural Law-viz rules of evidence re compellable witness iro supporting affidavit.
Procedural Law-viz rules of evidence re competent witness iro supporting affidavit.

Recusal re: Approach, Presumption of Judicial Impartiality, Nemo Judex in Sua Causa and the Doctrine of Necessity

This matter was set to be heard by my brother BHUNU J on 24 January 2011 at 09.00 hours but could not because the first respondent had filed its opposing papers shortly before 09.00 hours. BHUNU J then postponed it sine die to enable the applicants to file a replying affidavit by 31 January 2011, and, thereafter, the parties were to file supplementary heads of argument by 3 February 2011. Subsequently, the matter was set down for hearing on 4 February 2011 but was then postponed to 14 February 2011 when it found its way to me for the simple reason that BHUNU J is dealing with a criminal trial in which one of the accused persons, Dominic Mubayiwa, is a former Chief Executive Officer of the first respondent and was involved in concluding the Memoranda of Understanding between the parties which are the subject of the dispute between them.

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

The applicants seek interim relief on an urgent basis in the following terms:

“1. The first respondent be and is hereby interdicted from alienating or otherwise disposing of or dealing with the rights of the third and fourth respondents arising out of the Memoranda of Understanding concluded between the applicants and the first respondent at Harare on 25 July 2008 and 13 October 2006, pending the outcome of an arbitration to be instituted by the applicants in Paris in accordance with the aforementioned Memoranda of Understanding;

2. The first, third and fourth respondents be interdicted from amending, altering or changing the shareholding in and the share registers of the third and fourth respondents pending the outcome of the arbitration referred to in prayer 1 above;

3. The applicants be and are hereby ordered to institute the aforementioned arbitration proceedings within 60 days from the date of this order;

4. Leave be and is hereby granted to the applicant's legal practitioners of record to serve the provisional order on all respondents.”

By the time I heard the matter, the third term in the interim relief sought cited above had fallen away; the applicants having already instituted the arbitration proceedings on 31 January 2011 at the International Court of Arbitration in Paris, France.

The present application is opposed both on the question of urgency and on the merits. On the hearing day I restricted the parties' arguments to the issue of urgency.

The bare bones of the dispute are these:

Following the conclusion of the Memoranda of Understanding, alluded to in relief 1 supra, the first respondent advised the applicants, by letter dated 10 November 2010, of the termination of the Memoranda of Understanding for both platinum and nickel. What can be gleaned from the papers that were filed by the first respondent, as the main grounds for terminating the Memoranda of Understanding, are that they had lapsed, that they were entered into without the approval of the responsible Minister, hence invalid and that they were tainted with corruption in that the applicants, or one of their Directors, had a corrupt relationship/dealing with Dominic Mubayiwa, the erstwhile Chief Executive Officer of the first respondent. On 21 December 2010, the first respondent reiterated its position regarding the termination of the Memoranda of Understanding in these words;

“…,. The mutual negotiations and meetings do not in any way affect or change our position regarding the cancellation of the MOU. We further reiterate that the Chairman never assured you of the reinstatement of MOU as you seem to suggest in your letter. We hope this will put the record straight as has always been our emphasis in our meetings and you will be guided accordingly.”

The applicants' need to act on an urgent basis arose on 10 November 2010 when the Memoranda of Understanding were cancelled by the first respondent.

They did not.

Instead, on 22 November 2010, they demanded that the first respondent makes an undertaking “not to attempt to disturb the presently existing legal relationship as established by the MOUS and the rights preceding that relationship and flowing there-from in any way whatsoever, for examples (sic) by alienating any rights to any third party or affecting the Amari Group's rights in any way whatsoever. If no such undertaking is given pending the negotiations to be undertaken and pending the outcome of the arbitration before the International Court of Arbitration…, it would become necessary for an urgent interim interdict to be brought in the appropriate Zimbabwean Court to preserve the Amari Group's rights.”

Not only was this demand ignored by the first respondent but the first respondent put the issue beyond any doubt by its letter of 21 December 2010, alluded to supra, that no such undertaking would ever be given.

Another need to act on an urgent basis went begging.

It was only on 18 January 2011 that this urgent application was filed. No explanation has been proffered for the delay to act; at least, if one were to be benevolent to the applicants, from 21 December, 2010.

In Kuvarega v Registrar-General & Anor 1998 (1) ZLR 188 (HC), it was held that what constitutes urgency is not only the imminent arrival of the day of reckoning; a matter is urgent, if, at the time the need to act arises, the matter cannot wait. Urgency which stems from a deliberate or careless abstention from action until the deadline draws near is not the type of urgency contemplated by the Rules. It necessarily follows that the certificate of urgency, or the supporting affidavit, must always contain an explanation of the non-timeous action if there has been a delay.

In casu, such an explanation is absent except for some allusion to or narration of a careless abstention from action.

The preferential treatment of allowing a matter to be dealt with urgently is only extended if good cause is shown for treating the litigant in question differently from most litigants - See General Transport and Engineering (Pvt) Ltd and Ors v Zimbabwe Banking Corporation 1998 (2) ZLR 301 (HC).

In casu, no such good cause has been shown…,.

In the event, on the totality of the foregoing, the present application has failed to scale the insurmountable hurdle besetting it for it to qualify for the urgency contemplated by the Rules. It is accordingly dismissed on that basis with costs.

Subpoena Ad Testificandum or Witness Summons re: Competent or Compellable Witness, Claim of Privilege & Rule of Relevance

Even the perceived need to act, viz the alleged fear of the first respondent being in the process of transferring the applicants' interest in the third and fourth respondents to an unnamed 3rd party is mere speculation or conjecture.

The applicants allege that their representatives “in Zimbabwe have been informed that first respondent is in the process of negotiating the disposal of the rights to a 3rd party.”

The so-called 3rd party is not named and the representatives have filed no affidavit to support the averment. The allegation remains a rumour and the Court does not rely/act on rumours.

MUTEMA J: This matter was set to be heard by my brother BHUNU J on 24 January, 2011 at 09.00 hours but could not because the first respondent had filed its opposing papers shortly before 09.00 hours. BHUNU J then postponed it sine die to enable the applicants to file a replying affidavit by 31 January, 2011 and thereafter, parties were to file supplementary heads of argument by 3 February, 2011. Subsequently, the matter was set down for hearing on 4 February, 2011 but was then postponed to 14 February, 2011 when it found its way to me for the simple reason that BHUNU J. is dealing with a criminal trial in which one of the accused persons Dominic Mubayiwa is a former Chief Executive Officer of first respondent and was involved in concluding the Memoranda of Understanding between the parties which are the subject of the dispute between them.

            The applicants seek interim relief on an urgent basis in the following terms:

            “1.       The first respondent be and is hereby interdicted from alienating or otherwise

disposing of or dealing with the rights of the third and fourth respondents arising out of the Memoranda of Understanding concluded between the applicants and the first respondent at Harare on 25 July 2008 and 13 October 2006, pending the outcome of an arbitration to be instituted by the applicants in Paris in accordance with the aforementioned Memoranda of  Understanding;

 

2.                  The first, third and fourth respondents be interdicted from amending, altering or changing the shareholding in and the share registers of the third and fourth respondents pending the outcome of the arbitration referred to in prayer 1 above;

 

3.                  The applicants be and are hereby ordered to institute the aforementioned arbitration proceedings within 60 days from the date of this order;

 

4.                  Leave be and is hereby granted to the applicant's legal practitioners of record to serve the provisional order on all respondents”.

 

By the time I heard the matter the third term in the interim relief sought cited above

had fallen away, the applicants having already instituted the arbitration proceedings on 31 January, 2011 at the International Court of Arbitration in Paris, France.

            The present application is opposed both on the question of urgency and on the merits. On the hearing day I restricted the parties' arguments to the issue of urgency.

            The bare bones of the dispute are these: Following the conclusion of the Memoranda of Understanding (MOUS) alluded to in relief 1 supra, the first respondent advised the applicants by letter dated 10 November, 2010 of the termination of the MOUS for both platinum and nickel. What can be gleaned from the papers that were filed by first respondent, as the main grounds for terminating the MOUS are that they had lapsed, that they were entered into without the approval of the responsible Minister, hence invalid and that they were tainted with corruption in that the applicants or one of their directors had a corrupt relationship/dealing with Dominic Mubayiwa the erstwhile Chief Executive Officer of the first respondent. On 21 December, 2010 the first respondent reiterated its position regarding the termination of the MOUS in these words, “… The mutual negotiations and meetings do not in any way affect or change our position regarding the cancellation of the MOU. We further reiterate that the chairman never assured you of the reinstatement of MOU as you seem to suggest in your letter. We hope this will put the record straight as has always been our emphasis in our meetings and you will be guided accordingly”.

            The applicants' need to act on an urgent basis arose on 10 November, 2010 when the MOUS were cancelled by first respondent. They did not. Instead on 22 November, 2010 they demanded that first respondent makes an undertaking “not to attempt to disturb the presently existing legal relationship as established by the MOUS and the rights preceding that relationship and flowing there-from in any way whatsoever, for examples (sic) by alienating any rights to any third party or affecting the Amari Group's rights in any way whatsoever.

            If no such undertaking is given pending the negotiations to be undertaken and pending the outcome of the arbitration before the International Court of Arbitration, … it would become necessary for an urgent interim interdict to be brought in the appropriate Zimbabwean Court to preserve the Amari Group's rights”.

            Not only was this demand ignored by the first respondent but first respondent put the issue beyond any doubt by its letter of 21 December, 2010 alluded to supra that no such undertaking would ever be given. Another need to act on an urgent basis went begging. It was only on 18 January, 2011 that this urgent application was filed. No explanation has been proferred for the delay to act, at least, if one were to be benevolent to applicants, from 21 December, 2010.

            In Kuvarega v Registrar-General & Anor 1998(1) ZLR 188 (HC), it was held that what constitutes urgency is not only the imminent arrival of the day of reckoning; a matter is urgent, if at the time the need to act arises, the matter cannot wait. Urgency which stems from a deliberate or careless abstention from action until the deadline draws near is not the type of urgency contemplated by the rules. It necessarily follows that the certificate of urgency or the supporting affidavit must always contain an explanation of the non-timeous action if there has been a delay. In casu such an explanation is absent except for some allusion to or narration of a careless abstention from action.

            The preferential treatment of allowing a matter to be dealt with urgently is only extended if good cause is shown for treating the litigant in question differently from most litigants – See General Transport and Engineering (Pvt) Ltd and Ors v Zimbabwe Banking Corporation 1998(2) ZLR 301 (HC). In casu no such good cause has been shown. Even the perceived need to act, viz alleged fear of first respondent being in the process of transferring applicants' interest in third and fourth respondents to an unnamed 3rd party is mere speculation or conjecture. Applicants allege that their representatives “in Zimbabwe have been informed that first respondent is in the process of negotiating the disposal of the rights to a 3rd party”. The so called 3rd party is not named and the representatives have filed no affidavit to support the averment. The allegation remains a rumour and the Court does not rely/act on rumours.  

            In the event, on the totality of the foregoing, the present application has failed to scale the insurmountable hurdle besetting it for it to qualify for the urgency contemplated by the rules. It is accordingly dismissed on that basis with costs.

 

 

 

Dube, Manikai & Hwacha, applicants' legal practitioners

Mutamangira & Associates, 1st respondent's legal practitioners
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