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Zanu-PF politburo member clashes with mining partner
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A bid by Zanu-PF politburo member Omega Hungwe to retain control of mining machinery after a joint venture agreement with Huwambo (Pvt) Ltd soured has suffered a setback, following the High Court's decision to refuse to entertain her case.
The dispute stems from a clause in the agreement between Hungwe and Huwambo, specifically Clause 15, which mandates that any disputes arising from the agreement should be resolved through arbitration. The High Court ruled that it had no jurisdiction to hear the case and referred the matter to arbitration as stipulated in the contract.
Hungwe had approached the High Court seeking an interdict to prevent Huwambo from removing machinery from her Mazowe farm, claiming the equipment as security for compensation she alleges is owed to her due to a breach of contract by Huwambo. However, Justice Maxwell Takuva, presiding over the case, ruled that the arbitration clause in the agreement explicitly excludes the courts' jurisdiction.
"In my view, this clause is crystal clear. It ousts the jurisdiction of courts of law," Justice Takuva ruled. He noted that while Hungwe argued she was not seeking substantive relief but rather an interdict, the founding affidavit did not mention arbitration, which is central to the agreement. "The court's duty is to enforce the parties' contract, not to make one for them," the judge stated.
As a result, the judge struck the case off the roll, ordering the parties to resolve their dispute through arbitration as outlined in their contract. The court also ruled that Huwambo should pay the costs of the suit.
The dispute dates back to October 26, 2023, when Hungwe entered into an agreement with Huwambo to extract minerals from her Mazowe farm, under a special grant awarded to her by the Ministry of Mines and Mining Development. The agreement required Huwambo to begin mining operations within six months, but Hungwe claims the company failed to fulfill its obligations, resulting in significant financial losses for her.
The situation escalated in May 2024 when Huwambo allegedly attempted to seize the mining machinery from Hungwe's farm, which she had held as security for unpaid compensation. Hungwe contended that this act was unlawful and violated her property rights under the contract, prompting her to seek an interdict in the High Court to prevent the removal of the machinery.
However, Huwambo opposed the application, arguing that the matter should be handled through arbitration, as outlined in their agreement. Justice Takuva's ruling upholds the principle that the parties' contractual choice to resolve disputes through arbitration must be respected.
This setback for Hungwe underscores the importance of adhering to contractual agreements, with the court reaffirming that when parties agree to arbitration as their dispute resolution mechanism, it effectively removes the jurisdiction of the courts.
The dispute stems from a clause in the agreement between Hungwe and Huwambo, specifically Clause 15, which mandates that any disputes arising from the agreement should be resolved through arbitration. The High Court ruled that it had no jurisdiction to hear the case and referred the matter to arbitration as stipulated in the contract.
Hungwe had approached the High Court seeking an interdict to prevent Huwambo from removing machinery from her Mazowe farm, claiming the equipment as security for compensation she alleges is owed to her due to a breach of contract by Huwambo. However, Justice Maxwell Takuva, presiding over the case, ruled that the arbitration clause in the agreement explicitly excludes the courts' jurisdiction.
"In my view, this clause is crystal clear. It ousts the jurisdiction of courts of law," Justice Takuva ruled. He noted that while Hungwe argued she was not seeking substantive relief but rather an interdict, the founding affidavit did not mention arbitration, which is central to the agreement. "The court's duty is to enforce the parties' contract, not to make one for them," the judge stated.
As a result, the judge struck the case off the roll, ordering the parties to resolve their dispute through arbitration as outlined in their contract. The court also ruled that Huwambo should pay the costs of the suit.
The dispute dates back to October 26, 2023, when Hungwe entered into an agreement with Huwambo to extract minerals from her Mazowe farm, under a special grant awarded to her by the Ministry of Mines and Mining Development. The agreement required Huwambo to begin mining operations within six months, but Hungwe claims the company failed to fulfill its obligations, resulting in significant financial losses for her.
The situation escalated in May 2024 when Huwambo allegedly attempted to seize the mining machinery from Hungwe's farm, which she had held as security for unpaid compensation. Hungwe contended that this act was unlawful and violated her property rights under the contract, prompting her to seek an interdict in the High Court to prevent the removal of the machinery.
However, Huwambo opposed the application, arguing that the matter should be handled through arbitration, as outlined in their agreement. Justice Takuva's ruling upholds the principle that the parties' contractual choice to resolve disputes through arbitration must be respected.
This setback for Hungwe underscores the importance of adhering to contractual agreements, with the court reaffirming that when parties agree to arbitration as their dispute resolution mechanism, it effectively removes the jurisdiction of the courts.
Source - newsday
