Online Reporter
Fidelis Munyoro
Chief Court Reporter
The High Court has set aside a default judgment against businessman Mr David Jaji Hwehwe in a mining royalties dispute with Falcon Gold Zimbabwe Limited.
Justice Joseph Mafusire delivered the ruling recently after hearing an application for rescission of judgment filed by Mr Hwehwe.
The judgment initially entered on July 17, 2025 had awarded Falcon Gold US$67 700 plus interest and costs after Mr Hwehwe failed to attend a virtual pre-trial conference in the Commercial Division of the High Court.
The court had struck off Mr Hwehwe’s plea and entered judgment in favour of Falcon Gold in his absence.
The businessman subsequently applied to set aside the judgment, citing a systems failure that prevented him from joining the virtual session.
In his application, Mr Hwehwe explained that he and his legal team, who had travelled 350 kilometres from Gweru to Harare for better internet connectivity, were unable to log into the session.
Despite arriving at the court’s internet hub in good time, they were not admitted into the virtual platform due to what they described as an error on the part of court officials.
They were informed by a judicial clerk that the session had concluded and judgment had been entered by default.
Falcon Gold opposed the rescission application, describing it as an abuse of court process.
The company argued that Mr Hwehwe had admitted his indebtedness on multiple occasions and that the default judgment should stand.
Falcon Gold’s claim stemmed from royalties it alleged the businessman owed under tribute agreements dating back to 2016, which allowed him to mine on Falcon Gold’s claims in exchange for royalty payments.
Mr Hwehwe denied owing the judgment amount, arguing that the debt had been set off against unpaid water collection charges owed to him by Falcon Gold.
He further claimed that a new tribute agreement signed in January 2023 reduced his royalty payments to US$2 500 per month until his mining operations became profitable.
This, he argued, superseded any prior agreements and accounted for the disputed debt.
Falcon Gold disputed this interpretation, maintaining that the agreement required monthly payments of US$5 000.
Justice Mafusire found that Mr Hwehwe’s failure to attend the pre-trial conference was not willful and resulted from a systems or administrative error.
The court noted that Mr Hwehwe had actively participated in the litigation process by filing his plea and defending the claim.
The judge also highlighted a January 2023 letter from Falcon Gold that appeared to support Mr Hwehwe’s position regarding reduced royalty payments.
The letter acknowledged Mr Hwehwe’s financial difficulties and confirmed the temporary acceptance of US$2 500 monthly payments until his production improved.
The court ruled that Mr Hwehwe had raised a bona fide defence warranting further investigation at trial, particularly regarding the terms of the 2023 agreement and the parties’ financial arrangements.
Justice Mafusire emphasised the need for a proper examination of the tribute agreements and the parties’ conduct.
The default judgment was set aside, and the matter will proceed to trial. Costs were ordered to be determined at the conclusion of the case.
Peter Tanyanyiwa