Kasolo to challenge Sangwa injunction
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 He further, asks whether the High Court can be moved to determine a matter under the repealed companies Act.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