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Equity PROPERTIES has successfully appealed against a High Court judgment that gave Interfin Bank the permission to attach its land to recover a US$2,4 million debt.
The High Court had issued an order in July for Equity Properties to pay US$2,356 million in full plus 20 percent interest per annum to Interfin Bank, as curator Peter Bailey of KPMG Chartered Accountants makes efforts to recover the bank’s funds.
According to the latest judgment in favour of Equity Properties which was handed down on August 14, the High Court ruled that mortgage bond number 5818/2011 which relates to the portion of land in question, Lot 3 Bannockburn be declared null and void.
Lot 3 Bannockburn had been used as security to secure the facility from Interfin Bank. The impending attachment of the property had already caused anxiety among some people who had acquired stands within the property from the property firm.
Late last year Equity Properties proposed a plan to offset it indebtedness to Interfin. It had offered Interfin’s individuals and corporates with money that was held up in the bank an opportunity to liquidate their balances through acquiring residential stands in a development that was being undertaken by the property development firm in Harare.
Equity Properties was offering the residential stands measuring 2 000 square metres at about US$18 per square metre.
In return the property firm would use the debit entries to settle its indebtedness with the troubled commercial bank.
Online Reporter