News / National
Dembare in deep $250,000 trouble
10 Jan 2019 at 02:53hrs | Views
The 2019 Castle Lager Premier Soccer League season is set to start on a bad note for the country's biggest football club, Dynamos, after a local financial institution petitioned the High Court seeking an order to garnish all the club's financial sources in a bid to recover a debt of over $247 505.
According to court papers recently filed by CBZ Bank, the litigation follows the Harare giants' failure to repay a loan received over seven years ago.
CBZ is cited as the judgment creditor and Dynamos as the judgment debtor, while Steward Bank (Pvt) Ltd, BancABC, NetOne (Pvt) Ltd and Nyaradzo Life Assurance Company, are cited as garnishees.
"This is an application for an order that any money at present due or becoming due in the future to the judgment debtor (Dynamos) by the garnishee namely Steward Bank (Pvt) Ltd, African Banking Corporation of Zimbabwe Limited trading as BancABC, NetOne (Pvt) Ltd, and Nyaradzo Life Assurance Company or any other third party within the jurisdiction of this honourable court, be attached in terms of Order 42, Rule 337 of the High Court, 1971," CBZ Bank's head of recoveries Gift Chinyamutangira said in his affidavit.
The bank said on June 21 2012, Dynamos and its executives were ordered by High Court judge Justice Nicholas Mathonsi to pay $247 505,75, including a penalty interest of 36% per annum calculated daily from March 27 2012, until the date of issuing of the summons.
"The judgment debtor has constantly refused to comply with the court order to repay the debt owed. Enforcing the order has been made difficult, partly due to the sheriff's inability to attach gate-takings, which had already been targeted by a number of stakeholders.
"Property believed to be owned by the defendant has been claimed by interpleaders on several occasions, thus leaving the sheriff at a disadvantage when it came to executing the court order."
According to the court papers, when on June 21, 2012 Justice Mathonsi granted an order in default against Dynamos, the same order was granted against Kenni Mubaiwa, John Kanokanga, Casper Muzenda, Michael George Ignatious and four other individuals who were not mentioned in the court order.
"As a result, the judgment creditor has constantly endured prejudice due to the actions by the judgment debtor, thereby unjustly enriching the latter," the bank said.
"The applicant (CBZ) reasonably believes that the judgment debtor is obligated to receive funds from the third and fourth garnishees (NetOne and Nyaradzo) in order to fulfil their contracted obligations, thus the judgment creditor seeks an order to attach those fees and all other forms of revenue received by the garnishees on behalf of the judgment debtor until the debt has been repaid in terms and in order 42, Rule 377 of the High Court rules."
Chinyamutangira further said his company continues to incur legal costs and granting this application with costs would help it ensure that the club pays its debt. Sometime in February last year, the Premier Soccer League also obtained a garnishe order against Dynamos with a view to compel the club to settle the same debt. The order was granted by High Court judge Justice Owen Tagu and at the time of the granting of the order, the club had not opposed the application and the court order was granted in default.
Justice Tagu's order read in part: "Any amount at present due or becoming due to the judgement debtor (Dynamos) by the garnishee be attached and be directly paid into CBZ Bank Limited, account number 02122982030018, Selous Branch, until the court order granted by this court in case number 5511/12 has been satisfied in full."
The current application is yet to be set down for hearing.
According to court papers recently filed by CBZ Bank, the litigation follows the Harare giants' failure to repay a loan received over seven years ago.
CBZ is cited as the judgment creditor and Dynamos as the judgment debtor, while Steward Bank (Pvt) Ltd, BancABC, NetOne (Pvt) Ltd and Nyaradzo Life Assurance Company, are cited as garnishees.
"This is an application for an order that any money at present due or becoming due in the future to the judgment debtor (Dynamos) by the garnishee namely Steward Bank (Pvt) Ltd, African Banking Corporation of Zimbabwe Limited trading as BancABC, NetOne (Pvt) Ltd, and Nyaradzo Life Assurance Company or any other third party within the jurisdiction of this honourable court, be attached in terms of Order 42, Rule 337 of the High Court, 1971," CBZ Bank's head of recoveries Gift Chinyamutangira said in his affidavit.
The bank said on June 21 2012, Dynamos and its executives were ordered by High Court judge Justice Nicholas Mathonsi to pay $247 505,75, including a penalty interest of 36% per annum calculated daily from March 27 2012, until the date of issuing of the summons.
"The judgment debtor has constantly refused to comply with the court order to repay the debt owed. Enforcing the order has been made difficult, partly due to the sheriff's inability to attach gate-takings, which had already been targeted by a number of stakeholders.
"Property believed to be owned by the defendant has been claimed by interpleaders on several occasions, thus leaving the sheriff at a disadvantage when it came to executing the court order."
According to the court papers, when on June 21, 2012 Justice Mathonsi granted an order in default against Dynamos, the same order was granted against Kenni Mubaiwa, John Kanokanga, Casper Muzenda, Michael George Ignatious and four other individuals who were not mentioned in the court order.
"As a result, the judgment creditor has constantly endured prejudice due to the actions by the judgment debtor, thereby unjustly enriching the latter," the bank said.
"The applicant (CBZ) reasonably believes that the judgment debtor is obligated to receive funds from the third and fourth garnishees (NetOne and Nyaradzo) in order to fulfil their contracted obligations, thus the judgment creditor seeks an order to attach those fees and all other forms of revenue received by the garnishees on behalf of the judgment debtor until the debt has been repaid in terms and in order 42, Rule 377 of the High Court rules."
Chinyamutangira further said his company continues to incur legal costs and granting this application with costs would help it ensure that the club pays its debt. Sometime in February last year, the Premier Soccer League also obtained a garnishe order against Dynamos with a view to compel the club to settle the same debt. The order was granted by High Court judge Justice Owen Tagu and at the time of the granting of the order, the club had not opposed the application and the court order was granted in default.
Justice Tagu's order read in part: "Any amount at present due or becoming due to the judgement debtor (Dynamos) by the garnishee be attached and be directly paid into CBZ Bank Limited, account number 02122982030018, Selous Branch, until the court order granted by this court in case number 5511/12 has been satisfied in full."
The current application is yet to be set down for hearing.
Source - newsday
