adminyears ago from one of businessman Jayesh Shah’s companies.
They were named as Tapera William Nyemba, Christopher Goromonzi and Josphat Sachikonye.
Mr Shah represented the United Arab Emirates-registered company Alshams Building Materials in the deal that granted a loan to the three men. At the time they operated a Jersey Island-registered firm, Barato Holdings Limited.
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Justice Samuel Kudya ruled that the debt should be paid with interest at the rate of 15 percent per annum from December 30 2004.
The court made the ruling after a successful application by Advocate Lewis Uriri.
Atherstone and Cook instructed Adv Uriri while Mr Mordecai Pilate Mahlangu represented the trio.
The court described Mr Shah as “a truthful and highly credible witness” whose evidence was mostly unchallenged in court.
Justice Kudya believed Mr Shah’s story and came to the conclusion that he deserved the US$1,5 million with interest.
He dismissed Mr Sachikonye’s defence that at the time of the signing of the deed of suretyship he did not know the purpose of his signature.
The court held that the three “surely borrowed money” from the firm and that they should pay it back with interest.
“The first, second and third defendants shall pay to the plaintiff jointly or severally the sum of US$1 518 351,44 together with interest at the rate of 15 percent per annum from December 30 2004 to the date of full payment,” said the judge.
“(They shall pay) costs of the suit on the scale of legal practitioner and client.”
After the three borrowed the money in 2003, they signed deeds of surety in favour of Mr Shah.
According to the court papers, the pair convinced Mr Shah that Barato had the capacity to pay back the money in accordance with the agreed terms.
Alshams Building Materials released the money to Barato but the firm says the loan was never repaid.
According to the loan agreement Barato was obliged to repay the loan by December 30, 2004.
Barato tendered 42 299 673 shares in Ariston Holdings as additional security.
The agreement compelled Mr Nyemba, Mr Goromonzi and Mr Sachikonye to sign personal guarantees.
In default, the agreement provided that Alshams would appropriate the security given and sue the defaulters for any shortfall.
In August 2005, Alshams cancelled the agreement and appropriated the Ariston Holdings shares deposited with it.
The shares, at that time, were valued at US$683 753,44 and that prompted Alshams to sue over the shortfall of US$1,5 million.
In the opposing papers, the three argued that they have since resigned from Barato and that the appropriated shares were worth more than the loan.
They contended that the loan was repaid by way of dividend payment, together with the appropriated shares.
According to three men, there was no debt.
They further argued that the personal surety in question was “unlawful and invalid” because at that time, no exchange control authority was sought.
Mr Sachikonye argued that he signed the surety “in the mistaken, but honest belief that it was a document among many relating to an entirely different transaction”.
He also contended that he was never party to the agreement in question.
Online Reporter