Kasolo appointment as Mattaniah receiver in court
… as (Finance Bank) Atlasmara, the lenders were not consulted
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 Mattaniah Investment Limited (in receivership).
Mr Sangwa contends that Atlasmara, who are the lenders to Mattaniah, were not consulted before the receiver for Mattaniah was appointed. In this matter, Mr Sangwa, Mattaniah Investment Limited and Agri-Foods and Allied Industries Limited, jointly sued Mr Kasolo. They questioned whether Mr Kasolo can perform the functions of a receiver and manager without prior consultation of Finance Bank Zambia plc (now trading as Atlasmara) and Leasing Finance Company Limited who are the lenders. They further questioned 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. Further, whether the High Court can be moved to determine a matter under the repealed Companies Act.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 Jere as joint receivers and managers without consulting the other lenders, who are 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.