Ka­solo to chal­lenge Sangwa in­junc­tion

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By NA­TION RE­PORTER

LUSAKA lawyer An­thony Ka­solo in­tends to raise pre­lim­i­nary is­sues on a point of law in a mat­ter where State Coun­sel John Sangwa has ap­plied for an in­junc­tion to re­strain him from act­ing as re­ceiver and man­ager of At­las Mara.

In this mat­ter Mr Sangwa, Mat­ta­niah In­vest­ment Lim­ited Rep­re­sent­ing At­las Mara and Agri-Foods and Al­lied In­dus­tries Lim­ited, jointly sued Mr Ka­solo ques­tion­ing the va­lid­ity of his ap­point­ment by the De­vel­op­ment Bank of Zam­bia (DBZ) be­cause there was no doc­u­ment pro­duced to show that he was ac­cred­ited as an in­sol­vency prac­ti­tioner. But Mr Ka­solo in­di­cated in a no­tice to raise pre­lim­i­nary is­sues on a point of law that the court should es­tab­lish whether Mat­ta­niah In­vest­ment Lim­ited had the right to sue him re­gard­less of the fact that it was in re­ceiver­ship. He also wants the court to es­tab­lish whether Mr Sangwa who pur­ports to be di­rec­tor of Mat­ta­niah In­vest­ment Lim­ited had the right to sue him. He fur­ther, asks whether the High Court can be moved to de­ter­mine a mat­ter un­der the re­pealed com­pa­nies Act. Ear­lier, Mr Sangwa claimed DBZ had ap­pointed Ms Eva Jhala and Mr Richard Here as joint re­ceivers and man­agers with­out con­sult­ing the other lenders be­ing Fi­nance Bank Zam­bia Plc now trad­ing as At­las Mara and leas­ing Fi­nance Com­pany Lim­ited in line with the pro­vi­sions of clause 7.1 of the Deed of Pri­or­ity signed by the par­ties. Mr Sangwa said when DBZ re­alised that it breached the said pro­vi­sions, it de­cided to ter­mi­nate the re­ceiver­ship and com­mu­ni­cated to him by let­ter dated by June 6, 2018. He how­ever, said on Septem­ber 7, this year Mr Ka­solo sent let­ters to him, Fi­nance Bank Zam­bia Plc share­hold­ers and di­rec­tors claim­ing that he had been ap­pointed by DBZ as re­ceiver and man­ager of At­las Mara but did not pro­vide any doc­u­men­ta­tion to show that he was ac­cred­ited as an in­sol­vent prac­ti­tioner. And on Septem­ber 10, 2019, Mr Sangwa wrote to Mr Ka­solo ques­tion­ing the va­lid­ity of his ap­point­ment and de­mand­ing that he re­frains from act­ing as re­ceiver and man­ager of the bank or oth­er­wise in­ter­fer­ing with his busi­ness and prop­er­ties. “The de­fen­dant has not heeded the de­mand which has now ne­ces­si­tated the com­mence­ment of this ac­tion,” he said. Mr Sangwa wants the Lusaka High Court to de­ter­mine whether Mr Ka­solo could be ap­pointed and per­form the func­tions of a re­ceiver and man­ager and with­out ac­cred­i­ta­tion pur­suant to the pro­vi­sions of the com­pa­nies Act, Chap­ter 388 of the Laws of Zam­bia and Cor­po­rate In­sol­vency Act num­ber 9 of 2017. Mr Sangwa fur­ther asked the Court to de­ter­mine whether the Mr Ka­solo could con­tinue as re­ceiver and man­ager with­out prior con­sul­ta­tion of former Fi­nance Bank Zam­bia Plc and Leas­ing Fi­nance Com­pany Lim­ited. He fur­ther wants an order to dis­charge Mr Ka­solo as re­ceiver and man­ager of At­las Mara and an order for pay­ment of dam­ages for tres­pass to the his prop­erty and in­ter­fer­ence with the bank’s busi­ness which should be as­sessed by the regis­trar.

On Septem­ber 7, this year Mr Ka­solo sent let­ters to him, Fi­nance Bank Zam­bia Plc share­hold­ers and di­rec­tors claim­ing that he had been ap­pointed by DBZ as re­ceiver and man­ager of At­las Mara”, — John Sangwa

John Sangwa

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