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Mashudu Netsianda, Senior Court Reporter
THE High Court has dismissed an application by the Cold Storage Company (CSC) which sought to block the transfer of two of its properties in Bulawayo to a local businessman.
The two properties situated in Bulawayo’s Ilanda suburb were attached by the sheriff over outstanding employees’ wages.
CSC through its lawyers T Hara and Partners had filed an urgent chamber application at the Bulawayo High Court seeking an order blocking the transfer of its auctioned properties to Ahmed Esat’s name, arguing that the sale was illegal.
Justice Martin Makonese of the Bulawayo High Court ruled that CSC delayed in filing the application.
“This application was only filed on March 8, 2016, almost a month from the date the applicant became aware of the confirmation of the sale.
“With respect, the amount of the delay is both inordinate and unjustifiable and there is no excuse for the delay. On this basis alone, the court would be entitled to dismiss the application,” said the judge.
Justice Makonese said the application failed to conform to the High Court rules.
“The provisional order itself does not comply with the provisions of Rule 247 (1) of the High Court Rules. The application is fatally defective for non-compliance with the rules of the High Court and in the result I accordingly dismiss it with costs,” ruled the judge.
The properties valued at $71,000 were attached by the sheriff under a writ of execution against immovable properties issued by the Registrar of the High Court last year.
CSC through its administration manager, Reuben Chagwinya, sought to block the transfer of stand numbers 11970 and 8195 Bulawayo Township.
The company also wanted an order interdicting Esat from interfering with its right of ownership of the properties. The two properties were sold for $35,000 and $36,000.
Chagwinya said the two properties were sold while there was a pending chamber application under case number HC 2736/15 which sought the postponement or suspension of the sale of the property.
He argued that the sale of the attached property would impact negatively on the CSC’s proposed turnaround strategy as it was likely to lead to the total collapse of the company.
The company is in the process of engaging investors to provide working capital to enable it to redeem its debts.
The employees of the struggling beef processing company in 2014 made an application to the High Court to register an arbitral award of more than $450,000 in outstanding wages.
They made the application to the High Court in terms of the Labour Act after CSC failed to honour a consent arbitral award.
In terms of the consent arbitral award which was reached by mutual agreement, CSC and the employees had agreed that the total amount owed workers as of April 2013 was $453,110.
According to the court papers CSC was to pay employees $30,000 per month effective October 2013.
The other attached property also includes stand number 220 in Beitbridge measuring 2,859 square metres, stand number 17A Caithness Road, Hillside in Bulawayo measuring 9,652 square metres and Kromdraai Estate 4,451,4605 hectares in Mberengwa district.
The company’s fortunes have been blighted by allegations of mismanagement, corruption and heightened competition from private abattoirs.
Online Reporter