KCM APPLIES TO JOIN VEDANTA JUDICIAL REVIEW
KONKOLA Copper Mines (KCM) has applied to join the matter in which Vedanta Resources Holdings Limited has sought judicial review asking the Lusaka High Court to quash the appointment of acting Official Receiver Celine Meena Nair, as Provisional Liquidator of the mining giant.
KCM company secretary and legal counsel, Mr Maxwell Mainsa, said KCM should be joined as second respondent to the case because any decisions that would be made in the proceedings will affect the mine.
Mr Mainsa said no parties will be prejudiced if KCM is joined to the proceedings and instead the interest of justice would be served as the matter will be determined expeditiously and with clarity.
“That I have been advised by the intended respondent’s advocates and verily believe so that the court disapproved of multiplicity of proceedings and indeed a multiplicity of actions hence the application to join the intended respondent to these proceedings so that the issues relating to the parties are dealt with conclusively,” he contended.
In this matter, Vedanta, the majority shareholder in KCM contends that Ms Nair’s appointment is illegal on the basis that she had no authority to make such a decision.
Vedanta said she acted from want of authority and consequently her decision is beyond section 65(1) of the Corporate Insolvency Act.
Vedanta contended that the Official Receiver contravened regulation 2 of the Corporate Insolvency (Forms and Fees) Regulations by her failure to publish in the gazette her appointment to the said position. It added that her appointment ought to be registered with the Patents and Companies Registration Agency (PACRA) so as to make the public aware of the appointment.
In 2019, ZCCM-IH petitioned the High court to place KCM under liquidation claiming that it was being managed in a manner that is detrimental to its interests.
Among other allegations are evading taxes and for being insolvent and that it has failed to pay outstanding invoices to suppliers and contractors.