High Court upholds prior ruling in shareholder dispute

Fidelis Munyoro

Chief Court Reporter

THE High Court has given Big Diagnostics (Private) Limited the green light to enforce a prior court ruling, allowing it to reclaim access to the radiology department at Avenues Clinic.

This decision stands firm, even as Medical Investments Limited pursues its appeals.

Justice Rogers Manyangadze delivered the ruling recently in an urgent chamber application arising from a contentious shareholder dispute.

At the centre of the conflict is the operation of a radiology business housed within the Avenues Clinic in Harare.

Big Diagnostics, holding a 55 percent share in the radiology business, claimed that Medical Investments, the majority shareholder in the clinic and a 45 percent shareholder in the radiology entity, forcibly denied access to the premises.

The dispute stems from the termination of a shareholders’ agreement, an arbitral award in favour of Medical Investments, and ongoing litigation over the award’s validity.

During the proceedings, the court heard that Medical Investments had changed locks at the radiology unit and deployed bouncers to prevent Big Diagnostics’ staff from accessing the premises.

Big Diagnostics argued that the actions amounted to spoliation, disrupting its operations and compromising patient care.

The company sought a spoliation order, which was granted by Justice Fatima Maxwell in August 20, this year, directing the restoration of possession to Big Diagnostics.

Medical Investments and the radiology entity both filed appeals, which automatically suspended Justice Maxwell’s order.

Big Diagnostics then sought urgent leave to execute the order pending appeal, arguing that the disruption caused financial and reputational harm and jeopardised patient welfare.

Justice Manyangadze agreed, stating that “the effect of the spoliation was the cessation of the applicant’s business operations.”

Medical Investments contended that it did not own the premises and denied acting unlawfully.

It argued that any financial harm could be addressed through damages. Justice Manyangadze dismissed this, noting that interim relief was necessary to prevent further harm and restore the status quo until the substantive issues were resolved.

He remarked that “execution is the next logical step to take after obtaining a court order. It is not a trophy won merely for display and admiration.”

The radiology entity, represented separately, argued that the spoliation order did not apply to it and that the dispute was solely between the shareholders.

Justice Manyangadze rejected this, pointing out that the actions taken by Medical Investments directly impacted Big Diagnostics’ ability to operate the radiology business.

In granting the application, the court authorised Big Diagnostics to execute the spoliation order with the assistance of the Zimbabwe Republic Police or the Sheriff of the High Court.

Justice Manyangadze emphasised the need to restore operations to their previous state, saying, “The probabilities or equities of this matter lie in favour of granting the relief sought by the applicant.”

The ruling underscores the court’s stance against self-help measures in commercial disputes and highlights the principle that possession disrupted through unlawful means must be restored, regardless of the underlying shareholder disagreements.

The appeals by Medical Investments and the radiology entity remain pending.

Advocate Garikai Sithole, instructed by Mr Everson Chatambudza of Rubaya, Chatambudza Legal Practitioners and Ms Riana Moss of Scanlen and Holderness, argued the matter on behalf of Big Diagnostics (Private) Limited.

Adv Daniel Tivadar, instructed by Ms Gugulethu Ndlovu of Gill, Godlonton and Gerrans, represented Lechlade Investments (Private) Limited.

Meanwhile, Adv Taona Nyamakura appeared for Medical Investments Limited.

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