DBZ case Malanji, others want to be hear
FOREIGN Affairs Minister, Joseph Malanji has asked the Lusaka High Court to vacate its order reserving judgement in a matter where Development Bank of Zambia (DBZ) has sued him and three others over a loan facility.
DBZ is seeking the court to declare that as of August 25 this year Mr Malanji, Royal Gibson Hotel Limited, Benson Malanji and Gibson Power System Limited outstanding money owed to the bank stood at more than K5million.
Meanwhile, Mr Malanji has opposed the bank’s claim, contending that DBZ was the one that breached the terms of the loan facility upon execution and delayed to release the other 50 percent by about three months, causing a severe disruption to the hotel’s operations in that it incurred hefty demurrage charges for items it has procured in China to be used in its project.
This is in a matter where DBZ has sued Mr Malanji and the others contending that the money was owed to the bank by the hotel through a loan facility where stand No. 7742, and plot 1910, all in Kitwe were pledged as security under legal mortgage and third party mortgage by the hotel and Mr Malanji respectively.
DBZ is also asking for an order for enforcement of the debenture over all the hotel’s assets and appointment of a Receiver for the purpose of enforcing the said debenture as well as delivery up of possession by Royal Gibson hotel and Mr Malanji (Joseph) of the mortgaged properties.
It seeks foreclosure of mortgage properties, order for the sale of the mortgage properties and any relief the court may deemfit.
The respondents in October 2019 appointed Andrew Musukwa and Co but the law firm withdrew from representing the respondents due to con ict of interest.
And the respondents having not entered an affidavit in opposition to the originating summons, High Court Judge Kazembe Chenda set yesterday as the date for judgement in the matter.
However, on November 21 this year, Mr Malanji and others filed summons for an order to vacate the order reserving judgement.
n an affidavit in support of summons for an order vacating the order for the reservation of judgement based on DBZ’s pleadings, Mr Malanji stated that as a principal party giving instructions to the advocates, he was out of jurisdiction beginning and mid of November 2019 due to his usy schedule in the office of Foreign Affairs minister which he currently occupies.
nd in his affidavit in opposition to originating summons, Mr Malanji stated that the bank was responsible for the hotel’s failure to abide by the agreed payment plan since the entire amount of K3,800,00 was disbursed upon execution of the loan agreement.
Mr Malanji stated that the hotel has had to source for alternative funding from third parties to cover the gap caused by the delay on the part of the bank just to ensure that its project proceeded in a timely fashion.