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Court orders company to refund US$552,281 to Fidelity Gold Refinery
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The High Court has ordered Curechem Overseas to refund US$552,281 to Fidelity Gold Refinery following a dispute over an agreement to supply small-scale miners with gold chemicals. The ruling comes after Fidelity approached the court, citing Curechem's failure to deliver the full value of chemicals that had been paid for under a one-year supply agreement.
In a case before Justice Gladys Mhuri, the court heard that Curechem had received US$1,551,045 from Fidelity for the procurement of chemicals used in the mining and processing of gold ore. However, Fidelity received only US$954,243.79 worth of chemicals, leaving an outstanding balance of US$596,801.21 worth of chemicals that remained unused and in the possession of Curechem.
The dispute stemmed from the unutilised chemicals after the agreement expired on January 6, 2021. According to court papers, Fidelity had prepaid Curechem for the chemicals, which were to be distributed to small-scale miners identified by Fidelity. Between January 6, 2020, and May 27, 2020, the small-scale miners had drawn down chemicals worth US$954,243.79, but the remainder was not utilized.
When the contract expired and the chemicals remained in Curechem's possession, a dispute arose, and Fidelity sought legal action. The matter was initially adjudicated by advocate Tawanda Nyamakura, as per the arbitration clause in the agreement. The arbitrator ruled in favor of Fidelity, ordering Curechem to pay US$552,281.91 to Fidelity.
Despite the ruling, Curechem appealed the decision, arguing that it had made payments in local currency to Fidelity, which it claimed were not properly acknowledged. However, Fidelity demanded payment in US dollars.
In her ruling, Justice Mhuri stated that it was "common cause" that advocate Nyamakura had been a competent arbitrator and that the award was made based on factual findings and evidence. The judge also noted that arbitral awards are binding, and courts are generally reluctant to interfere with them unless there are grounds of public policy.
"It is my considered view that the award was made after the arbitrator had made factual findings considering the evidence placed before him. Hence the court respects these findings," Justice Mhuri ruled.
The court also noted that Curechem had failed to demonstrate that the arbitration award was contrary to public policy, which could have justified halting its registration.
As a result, the High Court granted Fidelity's application for the registration of the arbitral award and ordered Curechem to pay the outstanding US$552,281.91 to Fidelity Gold Refinery.
In a case before Justice Gladys Mhuri, the court heard that Curechem had received US$1,551,045 from Fidelity for the procurement of chemicals used in the mining and processing of gold ore. However, Fidelity received only US$954,243.79 worth of chemicals, leaving an outstanding balance of US$596,801.21 worth of chemicals that remained unused and in the possession of Curechem.
The dispute stemmed from the unutilised chemicals after the agreement expired on January 6, 2021. According to court papers, Fidelity had prepaid Curechem for the chemicals, which were to be distributed to small-scale miners identified by Fidelity. Between January 6, 2020, and May 27, 2020, the small-scale miners had drawn down chemicals worth US$954,243.79, but the remainder was not utilized.
When the contract expired and the chemicals remained in Curechem's possession, a dispute arose, and Fidelity sought legal action. The matter was initially adjudicated by advocate Tawanda Nyamakura, as per the arbitration clause in the agreement. The arbitrator ruled in favor of Fidelity, ordering Curechem to pay US$552,281.91 to Fidelity.
In her ruling, Justice Mhuri stated that it was "common cause" that advocate Nyamakura had been a competent arbitrator and that the award was made based on factual findings and evidence. The judge also noted that arbitral awards are binding, and courts are generally reluctant to interfere with them unless there are grounds of public policy.
"It is my considered view that the award was made after the arbitrator had made factual findings considering the evidence placed before him. Hence the court respects these findings," Justice Mhuri ruled.
The court also noted that Curechem had failed to demonstrate that the arbitration award was contrary to public policy, which could have justified halting its registration.
As a result, the High Court granted Fidelity's application for the registration of the arbitral award and ordered Curechem to pay the outstanding US$552,281.91 to Fidelity Gold Refinery.
Source - newsday
