adminTHE National Social Security Authority (NSSA) is battling to stop the execution of a court order compelling Capital Bank Corporation to return nearly 39 million ordinary shares to Renaissance Financial Holdings Limited.The shares are under the custody of the First Transfer Secretaries and Chief Justice Godfrey Chidyausiku has since signed the writ of delivery.
RFHL founder Patterson Timba obtained a default judgment against Capital Bank at the High Court on July 21 after the bank’s lawyers failed to attend the hearing and defend the claim. Justice Joseph Musakwa, who heard the matter, granted the relief Timba sought.
The judge ordered Capital Bank to deliver 38 971 348 Africa First Renaissance Corporation Limited ordinary shares to RFHL within seven days. In terms of the order, the Sheriff was directed to effect transfer of the shares . . . to RFHL in the event of CBC failing to comply with the court’s directive.
NSSA has now filed an urgent application seeking a stay of the writ of execution of the court order until the matter is finalised at the same court.
NSSA managing director James Matiza who deposed an affidavit said the order was issued in error and could be set aside in terms of the rules of the High Court.
“In the circumstances, the applicant prays for a stay of the execution of the writ of under HC4499/14 on the basis that it was issued in error . . . and prejudice the creditors of the fifth respondent (CBC),” said Matiza.
The matter has been set for hearing before Justice Chinembiri Bhunu but was deferred to end of this month. If the court rules against NSSA, it means Timba will have a 10 percent shareholding in First Mutual Limited.
The RBZ revoked the trading licence for Capital Bank from 4 June, after the banking institution voluntarily withdrew its licence. It said pursuant to the cancellation of the bank’s licence, Capital Bank ceased to be a banking institution. — BH24
derick.khumalo