British investor bid to seize 450 cattle flops

British investor Boustead Beef has lost its High Court bid to claim 420 head of cattle or the equivalent of US$193,660 from Triangle Limited as compensation for leasing properties belonging to the Cold Storage Commission (CSC) in Mwenezi, Masvingo.

In its application to the High Court Commercial Division, Boustead sought delivery of 420 cattle or the cash equivalent, asserting the value of the cattle as part of an agreement involving rental payments for the use of Chivumburu Ranch, located in the Mwenezi district.

The dispute stems from a 10-year lease agreement signed in 2014 between Triangle Limited and the CSC for the use of Chivumburu Ranch. Under the lease, Triangle was to pay annual rental fees in the form of cattle, according to a formula set out in the agreement.

In January 2019, Boustead took over the management of the CSC under a government agreement titled the "Livestock Joint Farming Concession Agreement" (JLCA). The agreement included provisions related to existing lease agreements, such as the one between CSC and Triangle.

Empowered by the JLCA, Boustead approached Triangle on September 9, 2020, to assume the role of lessor for Chivumburu Ranch. However, Triangle refused to acknowledge Boustead's status as the rightful lessor, leading to a series of demands from Boustead for the payment of the annual rental fees, which went unpaid.

The dispute over Boustead's status as lessor escalated when the CSC was placed under corporate rescue in December 2020, with Ngoni Kudenga initially appointed as the corporate rescue practitioner and later replaced by Vonani Majoko. Majoko was involved in consultations to resolve the issue of whether Boustead or the corporate rescue practitioner held the legal right to claim the rentals, but the matter remained unresolved.

Boustead subsequently took legal action against Triangle, asking the High Court to resolve the dispute.

High Court judge Justice Joseph Chilimbe addressed several key issues in the case, including whether Boustead had standing to bring the case and whether the JLCA was valid and binding. Boustead argued that it was entitled to the rental payments, but Triangle contested this, citing an arbitration agreement between the parties.

In his ruling, Justice Chilimbe concluded that Boustead's claim was not sustainable. He noted that while Boustead had assumed control of CSC under the JLCA, the agreement did not grant it the corporate identity or rights of CSC. The judge pointed out that CSC, as a separate corporate entity, was not a party to the JLCA, and the agreement did not explicitly transfer CSC's rights to Boustead.

"Boustead cannot claim to enjoy rights under an assignment because Triangle did not assent to such," Justice Chilimbe stated.

The judge's ruling effectively dismissed Boustead's claim for cattle or compensation, stating that the rights under the lease agreement between Triangle and CSC did not devolve to Boustead.

This case marks another setback for Boustead, following the termination of its US$130 million joint venture agreement with the Zimbabwean government in August. The joint venture, which gave Boustead control over CSC's ranches and meat processing facilities, was terminated despite promises to invest significant capital into rebuilding the struggling CSC.