Dismiss Vedanta’s joinder application, demands KCM

WE submit on the basis of the foregoing that the order sought by the intended 2nd respondent is not provided for by the companies (winding up) rules of 2004 and that there is no lacuna therein relating to the hearing of interested persons.

KONKOLA Copper Mines (KCM) wants the Lusaka High Court to dismiss the application by Vedanta Resources Holdings to join winding up proceedings against it.

This is in a matter in which ZCCM-IH has asked the Lusaka High Court to place KCM under liquidation.

Vedanta, which is the majority shareholder in KCM had applied for a joinder to the proceedings as a second intended respondent following its investment of millions of dollars in the mining company as such it is within its interest that the company should continue operating.

However, a lawyer, Mr Bonaventure Mutale, who has been retained by the provisional liquidator Milingo Lungu on behalf of KCM said an order being sought by Vedanta was not provided for in the companies winding up rules of 2004 and that there is no lacuna to the hearing of the interested persons.

“We submit on the basis of the foregoing that the order sought by the intended 2nd respondent is not provided for by the companies (winding up) rules of 2004 and that there is no lacuna therein relating to the hearing of interested persons. “We accordingly pray that the application be dismissed with costs,” Mr Mutale said.

Mr Mutale said there was no provision for joinder of a party at any stage of the proceedings in a petition to wind up a company.

He said a person who wished to be heard either to support or oppose the petition was only required to file the prescribed notice into court.

But Vedanta through its representative Hermein Uys argued that the application for joinder was rightly before the court.

He argued that KCM had failed to establish the basis upon which Vedanta should not be joined to the proceedings. “In any case the mining company (KCM) has not disputed the reasons advanced to be joined to the case,” Mr Uys said.

Meanwhile, ZCCM-IH raised a preliminary issue accusing Vedanta of having raised new issues without leave of the court. According to a press statement which was issued last week by Vedanta, it has started the process of suing Zambia at the international court of arbitration in the Haque as ZCCM breached the law when instead of resolving the dispute regarding KCM through arbitration, decided to use the Zambian courts to appoint a provisional liquidator.

The case has since been adjourned to June 11 this year.