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Prosper Dembedza Herald Correspondent
An application filed by George Katsimberis seeking to block cancellation of a joint venture agreement between himself and his former partner Kenneth Sharpe has been struck off the roll by High Court Judge Justice Joseph Mafusire.
West Properties chief executive Mr Sharpe withdrew from the deal after Katsimberis reneged on their agreement and failed to deliver timely as has been agreed.
Upon sensing danger, Mr Sharpe decided to stop the deal, resulting in the present litigation.
Katsimberis took Mr Sharpe to court in 2020 for breach of contract and wanted the termination declared a nullity.
The matter was, however, removed from the roll with consent from both parties.
“Whereupon after reading documents filed of record and hearing counsel, it is ordered that by consent the matter is removed from the roll pending the resolution of the application for recusal to be launched by the plaintiffs. There shall be no order as to costs,” reads the brief order by the judge.
Mr Katsimberis and his company Halinka Investments were the plaintiffs in the matter.
Mr Sharpe was cited in his capacity as the trustee of the Kilimanjaro, Porcupine and the Hamster Trusts also cited as respondents in the application.
Castlehorpe Investments Pvt Ltd and Gunhill Ecofriendly Estate Pvt Ltd were also cited as respondents.
Mr Sharpe sought cancellation of the agreement accusing Katsimberis of failing to procure town planning approval which was to be obtained by November 2017.
He also noted that there was no development on the property.
Mr Sharpe also said Katsimberis had failed to comply with its building obligations.
“We are instructed that contrary to the agreed terms of the Joint Venture agreement, Halinka has breached the terms of the Joint Venture agreement by failing to perform in accordance with its building obligations, in particular to date there has been no procurement of the town planning approval which was to be obtained by the 15th of November 2017,” wrote Sharpe’s attorneys, Dube, Manikai and Hwacha.
“To date there has been no development on the property despite our client’s compliance with the terms of the Joint Venture Agreement and several requests for Halinka to perform, in light of its failure to take timely steps to comply with its building obligations.
“Halinka’s failure to perform in accordance with its obligations as set out in the joint venture agreement, is an unequivocal manifestation of its intention to not be bound by the terms of the Joint Venture Agreement and therefore amounts to repudation,” reads the letter that was written to Katsimberis.
Mr Sharpe then said he needed immediate cancellation of the joint venture agreement
According to court papers, Katsimberis and Sharpe entered into a joint venture agreement on June 7, 2016.
Parties agreed to develop some land in Harare measuring 7.663 hectares.
They intended to build 600 flats on the property.
Katsimberis was to conduct a legal accounting and technical due diligence which would be carried out by Virgin Management and Chinawa Law Chambers.
After that he was to pay US$150 000 in favour of Mr Sharpe or his nominee.
He was supposed to pay US$600 000 to enable release of the title deed to facilitate transfer of the property from Homeday Properties Pvt Ltd to the joint venture company Gunhill which was to be incorporated.
The parties were entitled to hold 50 percent shareholding each in the JVC.
Katsimberis was to pay the sum of US$750 000 which was to buy the stand for the flats.
Parties also agreed that upon the sale of the flats belonging the JVC they would be entitled to share profits on an equal basis.
Katsimberis however allegedly delayed resulting in the split.
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