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Zitac, through their lawyers Dube, Manikai & Hwacha, had argued that the order had been erroneously granted since it had not been served with the court application before the default judgment was granted.
Furthermore, it is argued that the order was only granted three working days after court application was filed.
“The order has already been and continues to be used by the applicants (Boka Investments) to the great prejudice of the first and second respondents (Zitac).
“As we address this letter to Her Ladyship the liquidator has moved out of the premises which were occupied by first and second respondents, and the applicant has taken occupation of these premises.
“The order has also been used to disable the respondents from prosecuting two matters which are pending before this honourable court,” claimed Zitac.
The latest judgment means the company will continue to be provisionally wound up.
However, the final liquidation order will be made after May 17 when interested parties may appear before the court to show cause why a final order cannot by made.
Zitac descent into the mire was precipitated by mounting debts which are estimated to be more than US$5 million.
Zitac and Boka Investments had a 15-year lease agreement — due to lapse in 2016 — but it was recently cancelled over alleged breaches of the agreement by the tenants.
The cancellation of the lease also forced the liquidator to vacate the premises.
It is believed that the dispute over Boka Auction Floors was precipitated by the failure by the tenants to settle their rentals, with arrears estimated to be around US$2 million.
Licence
However, Zitac’s problems seem to have been compounded by the firm’s failure to secure a licence from the Tobacco Industry and Marketing Board (TIMB) for the current tobacco selling season.
Apart from the more than US$2 million Zitac owes to Boka for commissions and rent arrears, the firm also owes US$200 000 to TIMB for levies and commissions from last season.
The companies also owes US$350 000 to the Mashonaland Tobacco Company.
It is also understood that Zitac has a US$820 000 debt obligation to a number of banks, including the Zimbabwe Allied Banking Group and the Metropolitan Bank.
The money was reportedly not secured. Zitac had secured the funding on the understanding that it would pay it back this season.
Moreover, the Reserve Bank of Zimbabwe and Zimra have a US$500 000 and US$1 million claim on the firm, correspondingly.
Boka Auction Floors are believed to have an annual turnover of US$54 million.-The Sunday Mail
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