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Indian business mogul ordered to compensate a Bulawayo businessman

by Limukani Mathonsi
08 Nov 2011 at 14:39hrs | Views
THE High Court of Zimbabwe has ruled that Bulawayo businessman and farmer who was recently evicted from a city centre building must be compensated with US$290 000.

The ruling, which creates a new twist in the decade long property wrangle between Mr Tayali and business mogul Mr Howard Chitrin, comes barely a week after Mr Tayali and many tenants situated at corner 6 avenue and Jason Moyo street were evicted by the Deputy Sherriff and anti-riot police.

Reads Justice Kamocha's Order made on November 7, 2011, in Full:

"Whereupon after reading documents filed of record and hearing Mr (Sindiso) Mazibisa for the Applicant it is ordered that 3rd , 4th, 5th , 6th and 7th Respondents jointly and severally one paying the other to be absolved pay Applicant a sum of US$290 00.

"3rd, 4th, 5th, 6th and 7th Respondent jointly and severally one paying and the other to be absolved pay costs of suit on an attorney client scale," reads the order in full.

According to court papers at hand –case number HC 2746 / 07 Cross Reference HC: 1583 / 07 and HC 2296 / 08, Tayali approached the High Court by way of summons seeking an order of compensation last month against natural and legal person that sold him the property.

In the papers, Potential Investments (Pvt ((Ltd), Ralema investments(Pvt) (Ltd) , Rebecca Elizabeth Humpage, Peral Patricia Mawa, Bruce Mawa, Maureen Orange, Aron Ray P Louw and Richard Chitrin are cited as first, second, third, fourth, fifth, sixth and seventh Respondents respectively.

Mr Chitrin owns Potential Investments (Pvt) (Ltd) and Ralema Investments (Pvt) (Ltd) whereas other Respondents are former directors of Potential Investments who sold the property to Mr Tayali.

The Chitrin- Tayali case began in 2002 when Mr and Mrs Tayali, who were tenants of the building at issue, bought the property after its then owner a company called – Potential Investments sold it for $130 million (old currency).

The sale was done through an agent, F and SC Accounting Private Limited run by Mr Raymond Louw – who was administering the building and invited buyers to make offers.

Mr Tayali made the highest offer and bought the building. At the same time, Mr Chitrin, who had also received the offer letter and subsequent reminders, did not respond to the offer because he was out of the country.

Upon return, Mr Chitrin went to Mr Louw the estate agent and persuaded him to revere the sale of the building as he wanted it.

Acting on Mr Chitrin's instructions, Mr Louw went to Ms Elizabeth Humpage residence and persuaded her to reverse the sale of the property, at the same time offering her $21million (old currency).

She refused to accept the money arguing that it was tantamount to "bad dealing" and that the money was a bribe.

Ms Humpage was one of the directors of Potential Investments Private Limited.

Irked by Ms Humpage refusal to reverse the deal, Mr Chitrin approached the High Court of Bulawayo seeking a court interdict barring Mr Tayali from transferring the property to his own name on the grounds that he (Mr Chitrin) had a "right of first refusal."

Justice Maphios Cheda ruled in favour of Mr Chitrin and Mr Tayali appealed against the ruling on 12 May 2005, in a case that he lost at the Supreme Court on 13 November 2006 (case number 140 / 05) after both courts concurred that Mr Chitrin had the right of first refusal, despite lack of apparent proof to sustain the same argument.

The Supreme Court judges who upheld the High Court judgment are Justices – Misheck Cheda, the then Chief Justice Godfrey Chidyausiku and Justice Veranda Ziyambi.

In an interview with The Sunday News on 21 April 2007; Mr Louw confessed that he did not know what "the right to first refusal" was about.

Unsatisfied with the handling of his matter Mr Tayali reported the case to various Government departments but nothing was done until he met the late Vice President Joseph Msika.

Mr Tayali has refused to leave the building until last week when he was evicted by the Deputy Sherriff and the anti-riot police.

To date, Mr Chitrin has not paid a cent for the building and has not made an offer to buy it, but he wants me to move out and the courts seem to agree to this.