adminlosing his first urgent chamber application in the High Court against the sale of the shares.
Mr Chidawu had filed an urgent chamber application to the High Court to prevent Mr Jayesh Shah from selling the shares to Mr Tawanda Nyambirai over a US$3 million loan he failed to repay to the businessman. But Justice Lavender Makoni dismissed the application in a ruling handed down last week before Mr Chidawu immediately countered the ruling with another urgent chamber application to prevent the transfer of the shares.
Justice Makoni had made a verbal ruling and was yet to make the written judgment detailing the reasons behind the decision.
This time Mr Chidawu included Mr Nyambirai as another respondent in the case set before Justice Tendai Uchena. The urgent application was set down for Thursday last week but was postponed to today.
TN Financial Holdings chief executive Mr Nyambirai had bought the shares after stockbrokers ISB Securities approached him and indicated the shares were available to the highest bidder.
Mr Nyambirai then bought the 300 000 ordinary shares at a 58 percent premium and had the share certificates transferred to him. But the settlement for the shares could not go through after Mr Chidawu objected to the sale.
According to local media reports, Mr Chidawu was supposed to repay the US$3 million loan within a maximum period of 30 days and the debt was allegedly supposed to have been repaid by February 20 this year. The terms of the agreement included a clause which allowed Mr Shah to dispose of the shares in the event that the borrower failed to pay within the time stipulated in the agreement, with 18 percent interest until he was repaid.
Clause 5.14 of the agreement stated that upon failure by the borrower to repay, the lender would cause surrender of the security in the form of the Pelhams Limited Shares held through investment vehicles owned by Mr Chidawu. The agreement also provided for civil and criminal proceedings in the event of default. According to police reports, Mr Chidawu had borrowed the money from Mr Shah to purchase diamonds from the Minerals Marketing Corporation of Zimbabwe with the intention of supplying a named buyer for US$9 million.
The report also alleged Mr Chidawu pledged money held in a family trust and proceeds from the sale of his stake in ABC Holdings. He also allegedly pledged to pay from proceeds from an airport-surfacing contract he held. Mr Chidawu’s lawyers are challenging the sale of the shares, alleging it was done paratie executie (provision in an agreement which entitles the creditor to execute, without recourse to the borrower and the court, and selling the borrower’s shares). This was allegedly because he was disputing the amount he reportedly owed Mr Shah.
Online Reporter