Chidawu’s appeal thrown out
Thursday, 21 June 2012 12:00
Daniel Nemukuyu Senior Reporter
BUSINESSMAN Mr Oliver Chidawu has lost his latest bid to block the transfer of 380 million Pelhams shares from businessman Mr Jayesh Shah to TN Asset Management, after the Supreme Court threw
out his appeal.
Deputy Chief Justice Luke Malaba, sitting with Justices Anne-Mary Gowora and Yunus Omerjee, on Tuesday dismissed Mr Chidawu’s appeal.
The court found that the High Court was correct in holding that the urgent chamber application filed by Mr Chidawu to block the share transfer was not urgent.
It was also found that the transaction had already been effected. A detailed judgment was expected soon from the Supreme Court.
Advocates Lewis Uriri and Thabani Mpofu appeared for Mr Shah and TN Holdings respectively, Advocates David Ochieng and Thembinkosi Magwaliba represented Mr Chidawu and his three firms.
The transfer resulted in TN being the major shareholder in Pelhams, with about 36 percent.
Mr Chidawu was initially the owner of the shares. But he lost them to Mr Shah after failing to pay back a US$2 million debt.
Mr Shah then sold the same shares to TN, which Mr Chidawu strongly opposed on the basis that the claim for the US$2 million was still before the High Court and that he was still contesting it.
An attempt to bar the sale of the shares flopped last year after the High Court dismissed Mr Chidawu’s urgent chamber application.
Mr Chidawu lost another case in which he sought to block the transfer of shares at the High Court, prompting him to file a notice of appeal at the Supreme Court.
Pending determination of the appeal, Mr Chidawu in December last year filed another chamber application at the Supreme Court, seeking to bar the transfer of the disputed shares.
The failed chamber application also sought to have the appeal set down for hearing earlier as an urgent matter.
But Chief Justice Godfrey Chidyausiku threw out the chamber application for lack of urgency.
Mr Chidawu’s three firms — Broadway Investments, Danoct Investments and Dannov Investments — formerly owned the shares in question.
The businessman borrowed US$2 million from Mr Shah to finance his companies and failed to pay back on time.
This prompted Mr Shah, who was hanging on to the three firms’ shares in Pelhams, to sell the shares to TN Asset Management.
The shares were sold on the Zimbabwe Stock Exchange. In the dismissed urgent chamber application, Mr Chidawu argued that the initial agreement was that Mr Shah would loan him US$3 million.
But Mr Chidawu said Mr Shah failed to honour the agreement of US$3 million because he finally gave him US$2 million.
He also argued that Mr Shah had already issued summons that he was strongly opposing.
Mr Chidawu argues that the sale was unlawfully conducted without allowing the court to consider the discrepancies he had raised.