Ex-Mazowe Mine managers’ bid to recover US$415 000 severance package in limbo

Fidelis Munyoro

Chief Court Reporter

FORMER managers of Mazowe Mining Company faced a setback in their quest to reclaim over US$415 000 in unpaid terminal benefits, as their case was dismissed from the High Court roll.

The case involving Dalabani Swadiki, Charles Kanengoni, Happyson Kaponda, Tapiwa Hwingwiri, and Shine Tafura against Mazowe Mining Company (Private) Limited was struck off the High Court roll last week.

The former managers had sought the court’s permission to recover unpaid terminal benefits totalling over US$415,000.

Their employment contracts had been mutually terminated in July 2023, with agreements for payment in instalments, but after initial compliance, the Mining Company defaulted.

Mazowe Mining Company, currently under corporate rescue proceedings, opposed the application.

Through its legal counsel, the gold mining company argued that the application was premature, as the corporate rescue process had not officially commenced and no creditors’ meeting had been held.

It was contended that the applicants had not exhausted remedies under the Insolvency Act and that the absence of a corporate rescue practitioner rendered the application ineffective.

The Mining company further argued that payments already made reduced the amounts claimed and attributed financial difficulties to disruptions caused by illegal mining.

They cautioned that granting leave would disrupt the corporate rescue process designed to ensure fairness among all creditors.

During the hearing, two critical points were raised: the prematurity of the application and the absence of a draft Labour Court application.

The applicants’ counsel countered that these points were raised late and should not be considered. However, he conceded the matter was premature given the absence of a formal corporate rescue order.

Presiding judge Justice Vivian Ndlovu upheld the preliminary points. The judge stated, “The application is premature and procedurally defective in the absence of a corporate rescue practitioner and a proper draft application before the Labour Court.”

The court struck the application from the roll with costs, effectively halting the applicants’ pursuit of their claims through the courts until proper corporate rescue procedures are in place.

 

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