Ex Parte: ZIMASCO (Pvt) Ltd (For a Provisional Order placing it under judicial management and for the appointment of a Provisional Judicial Manager) (HC 12220 of 2015) [2016] ZWHHC 53 (13 January 2016)

Ex Parte: ZIMASCO (Pvt) Ltd (For a Provisional Order placing it under judicial management and for the appointment of a Provisional Judicial Manager) (HC 12220 of 2015) [2016] ZWHHC 53 (13 January 2016)

An application for provisional judicial management under s 299(1)(a) of the Companies Act must be brought ex parte, with service only on the Master prior to filing with the court. Interested parties may not oppose at the initial stage; their rights to oppose arise only after the provisional order is granted. Non-compliance with the sequence of service under s 299(2) invalidates the application.

Citation
[2016] ZWHHC 53
Parties
Applicant: ZIMASCO (PRIVATE) LIMITED; Intervening Party: MBCA Bank Limited; Intervening Party: Nedbank Limited; Intervening Party: Stanbic Bank; Intervening Party: Central Africa Building Society
Court
Harare High Court
Jurisdiction
Zimbabwe
Judgment Date
13 January 2016
Case Number
HC 12220 of 2015
Procedural Posture
Application for Provisional Judicial Management / Ruling on Preliminary Objections and Application
Outcome
application dismissed
Legal Topics
Judicial Management, Locus Standi, Procedure for Provisional Orders
Source Language
English
Company Law Insolvency Judicial Management Locus Standi Procedure for Provisional Orders

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Parties

ZIMASCO (PRIVATE) LIMITED

Applicant

MBCA Bank Limited

Intervening Party

Nedbank Limited

Intervening Party

Stanbic Bank

Intervening Party

Central Africa Building Society

Intervening Party

Procedural Posture

Application for Provisional Judicial Management / Ruling on Preliminary Objections and Application

Legal Issues

  1. 1 Whether interested parties can oppose an application for provisional judicial management before the provisional order is granted
  2. 2 Whether the applicant complied with the procedural requirements under s 299(2) of the Companies Act

Ratio Decidendi

An application for provisional judicial management under s 299(1)(a) of the Companies Act must be brought ex parte, with service only on the Master prior to filing with the court. Interested parties may not oppose at the initial stage; their rights to oppose arise only after the provisional order is granted. Non-compliance with the sequence of service under s 299(2) invalidates the application.

Court Disposition

application dismissed

Orders

  • Notice of opposition by the 4 intervening banks expunged from the record
  • The 4 intervening banks have no locus standi to oppose at this stage; rights to oppose arise only under s 301(2)