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Golden Sibanda – Senior Business Reporter

Several prospective home owners could be thrown into quandary over the fate of their residential properties after the High Court ordered the suspension of activities and cancellation of a replacement title deed to a piece of land on which their housing stands are located.

The ruling pertained to a replacement title deed for Lot 3 Bannockbum popularly known as the Golden CT Suburb in Harare that is being developed by Equity Properties, a local firm embroiled in a dispute with businessman Jayesh Shah’s firm Al Shams Global, which is holding original title deed to the piece of land.

More than 300 prospective home owners had bought commercial and residential stands on Lot 3 Bannockbum, prior to the replacement title deed, for which the possession of the title deed has been a matter of a bruising legal wrangle between Al Shams and Equity Properties since 2012.

High Court Judge Justice Owen Tagu on Wednesday ordered the cancellation of a replacement title deed obtained by Equity Properties from the same court pursuant to a default judgment on a dispute over Al Shams Global’s alleged illegal possession of Lot No. 3 Bannockbum title deed.

However, Justice Tagu avoided ruling on the rights of the parties to the possession or ownership of the original title deed stating that the issue was not a matter before him, but before Justice Edith Mushore under consolidated cases.

The cases relate to whether Equity is liable to Al Shams to the tune of US$2,67 million for Bankers Acceptances obtained by Al Shams from Interfin, which were secured by the title deed.

More than 10 cases have been filed as the parties sued and counter sued on different aspects of the same dispute for which ruling is still pending.

Further, Justice Tagu did not set aside the actions of Equity Properties, as prayed for by Al Shams, which were done pursuant to the replacement title deed and entailed sales and subdivisions of the land in question, near Mt Pleasant in Harare.

Neither did Justice Tagu rule on the issue of sales of stands or stopping other actions of Equity Properties, which were not linked to the replacement copy and were done before its issuance.

“All actions by the first respondent made pursuant to the replacement title deed  . . . in lieu of the original title deed issued on 18 July 2018 referenced 2370/2018 be and are hereby set aside, including but not limited to the sub-division of Lot 3 Bannockbum; any transfers of stands in Lot No. 3 Bannockbum,” Justice Tagu said.

Al Shams had sued Equity Properties under an urgent chamber application, which also saw Equity Properties counter suing the businessman’s firm, over the right to hold the title deed to the piece of land for the upmarket residential property.

The dispute stemmed from the fact that Equity obtained a loan of US$1,6 million from Interfin Bank and while initially defaulted, it eventually fully repaid the loan, which was secured by the titled deed now at the centre of the court battles.

Equity argues that it fully repaid the loan after paying a total of US$3,2 million including interest, but Interfin was not able to return the title deed after ceding the documents to Al Shams, which had loaned the bank, which collapsed in 2012.

Equity claims Al Shams, which was a significant shareholder in the banking institution; allegedly knew the bank was going to fail and thus took possession of the title deed that secured a loan between the bank and Equity Properties, without the property firms’ consent.

Justice Tagu has previously ruled on an aspect of the dispute between Al Shams and Equity and ordered that the parties should adhere to the original terms of the Security Assignment Agreement and Security Trust Deed, which stated that the parties needed the consent of Equity Properties for the transfer of the title deed.