Friday, March 29, 2024

High Court suspends KCM wind-up hearing pending appeal ruling

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HIgh Court
HIgh Court

Zambia’s High Court on Tuesday suspended hearings on the winding up of Konkola Copper Mines until the Court of Appeal rules on the lower court’s refusal to let the matter go to arbitration, the provisional liquidator said.

Vedanta has been locked in a dispute with the Zambian government since May, when the government appointed a liquidator to run KCM which is 20% owned by ZCCM-IH and the rest by Vedanta.

Legal arguments have been heard in both Zambia and South Africa.

“Judge Banda decided that despite her not believing in the likelihood of Vedanta’s grounds for appeal, it was in the interest of justice to stay the hearing of the petition,” Provisional Liquidator Milingo Lungu said in a statement.

On Aug. 7, the Lusaka High Court refused Vedanta’s application to halt the Zambian government’s winding-up proceedings against KCM.

However, on Friday a South African high court judge found in Vedanta’s favour when he refused ZCCM leave to appeal a previous ruling in the South African courts halting the sale of KCM pending arbitration.

In response to the Lusaka High Court decision on Tuesday, Vedanta said in an emailed comment it remained “committed to engaging with the government of Zambia in order to find an amicable solution”.

Meanwhile, KCM released the following statement to the media.

LATEST COURT UPDATE-ZCCM IH VS KCM LIQUIDATION PROCEEDINGS

LUSAKA, 27TH AUGUST 2019: The High Court for Zambia today, 27th August, 2019 heard two different applications from Vedanta. These are:

1. The application on behalf of Vedanta Resources Holdings Limited (“Vedanta”) to stay the proceedings in the High Court until the appeal Vedanta wants to make to the Court of Appeal of Zambia is decided following the High Court’s Ruling of 7th August, 2019 refusing to refer the matter to arbitration; and

2. An application by Vedanta to curtail some of the powers given to the Provisional Liquidator by the Court on 21st May, 2019.

The Honourable Judge Madam Justice A.M. B. Bobo reserved ruling on the second application i.e. the application to curtail some of the powers of the Provisional Liquidator and she will decide on a later date.

With respect to the first application Honourable Judge Banda decided that despite her not believing in the likelihood of Vedanta’s grounds of appeal, it was in the interest of justice to stay the hearing of the Petition. This has the following consequences:

1. The hearing of the Petition will be suspended until the Court of Appeal of Zambia renders a decision on Vedanta’s appeal;

2. The Provisional Liquidator, Mr. Milingo Lungu, continues to be in charge of all operations and management of Konkola Copper Mines Plc; to operate normally and as before and no unit should be affected by the latest Ruling;

3. All contractual and commercial obligations are valid and will continue to be honoured by KCM;

In view of the above, we urge all the employees and Business Partners to remain calm, and continue to work safely as we ramp up production. Our Legal team is actively working towards securing KCM interests and ensuring that the due process of the law is followed.

Milingo Lungu

PROVISIONAL LIQUIDATOR

For any clarification contact:

Shapi Shachinda

Manager Public Relations & Communications

17 COMMENTS

  1. Bottom line is the Liquidator is still in charge … the rest of the stuff will still fall in place after this technicality … Let’s roll.

    Epo mpelele,

    BRM

    • BR lungu you come across as an uncle Tom. You seem ugly both inside and outside. Am sure you are single

    • there must be something wrong with us. BP got fined 20.8 billion us dollars for the horizon spill after they cleaned it up. This Indian thief has contaminated, Destroyed and rendered land useless due to short cuts. Why don’t we go that way. evidence is still there. There really shouldn’t be a case here. Wake up

    • ECL and the PF are now panicking after South African authorities seized a government owed Tanzanian passenger aircraft related to a court ruling in a South African court.
      The same thing can happen to Zambia

    • Bloggers please take note that the Shareholder’s Agreement between the Zambian govt. and Vandeata recognizes the judicial authority of the Zambian legal system meaning issues of disputes the first court of appeal is the Zambian courts, the SA courts only comes in if and only if the Zambian judicial system is nonfunctional or the appeal procedure has been exhausted.

  2. Vedanta owns 80% in KCM while ZCCM-IH owns 20%. How can a Minority Shareholder represent KCM? This is a Hostile Takeover. The KCM Shareholders Agreement is very clear that Shareholders Disputes should be resolved by the International Arbitrator in a JHB. Justice Banda Bobo is playing Politics becoz her Kangaroo Court should cease handling this matter and leave the International Arbitrator in JHB to adjudicate this Dispute. The sooner GRZ makes an offer to buy out Vedanta out of KCM the better. GRZ cannot sell KCM without Consent and Compensation to Vedanta. It will be disasterous for Zambia to ignore the KCM International Arbitrator Judgement in JHB. Disregarding International Laws and Treaties will be at Zambia’s Peril. If Vedanta is adequately compensate it will happily walk away from…

    • You people who do not know how under ground look like, you are very foolish.

      Learn not to comment on things you do not know.

      Do you know how debt that thief accrued for you to be careless in bucking?

      Is Agarwal your relative? Satan!!!

  3. All things being equal, the Court of Appeal will take into consideration what is stipulated in the Shareholder’s Agreement between ZCCM-IH and Vedanta and that is when the South African Judge become a legal genius.This is not rocket science,ZCCM-IH breached the Shareholder’s Agreement and secondly as a shareholder even when they have golden shares,can not invoke a liquidation process as if they are secured creditors.ZCCM-IH has board representation and one wonders why for many years of Vedanta’s mismanagement if KCM,they chose to be quiet while pocketing sitting allowances.

    • @ the Shareholder’s Agreement is not formulated in a vacuum, par say it recognizes the judicial authority of the Zambian legal system meaning issues of disputes the first court of appeal is the Zambian courts the SA courts only comes in if and only if the Zambian judicial system is nonfunctional or the appeal procedure has been exhausted.

  4. Like most things African – we always want politics to supersede covenant. No wonder declarations are always bankrupt. Let the agreement signed take its course… Vonse ni amendment cakuti – decree cakuti… unga seke koma!

  5. ECL and the PF are now panicking after South African authorities seized a government owed Tanzanian passenger aircraft related to a court ruling in a South African courts.
    The same thing can happen to Zambia

  6. @Chief Legal Advisor
    Then why was Vedanta excluded in the initial liquidation proceedings forcing them to go for international arbitration in SA as per Shareholder’s agreement? Judge Bobo Banda has even made it clear that she does not believe in the likelihood of Vedanta’s grounds for appeal…..does she have to believe the grounds for her to grant an appeal as a Judge? I thought arguments in court are between the Plaintiff and the Defendant,and the Judge after the ruling must always leave room for appeal.Now does the Shareholders’ agreement only allow the plaintiff(ZCCM-IH) to unilaterally invoke liquidation proceedings in Zambian courts without the defendant(Vedanta) present or be heard? If this was not the case,why did Vedanta seek legal redress in SA?

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