News / National
RioZim workers lose Supreme Court corporate rescue appeal
2 hrs ago |
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The Supreme Court has struck off an appeal by a diamond and minerals workers' union seeking to place RioZim Limited under corporate rescue after finding that the applicants failed to properly seek condonation for missing a court deadline.
Justice George Chiweshe, sitting in chambers, ruled that the appeal had been deemed abandoned after the applicants failed to pay security for costs within the prescribed period.
"The applicants were required to seek condonation for their non-compliance… They failed to do so. Their application is therefore fatally defective and ought to be struck off the roll," Justice Chiweshe said.
The Zimbabwe Diamond and Allied Minerals Workers Union, together with employee Precious Mwanza and former employee Owen Kapeta, had approached the High Court seeking corporate rescue for RioZim.
The applicants argued that the mining company was financially distressed and that corporate rescue would help protect workers and preserve the business.
The High Court dismissed the application after finding that the union and the two employees did not have the necessary legal standing to institute the corporate rescue proceedings.
The applicants subsequently appealed but failed to pay security for costs within the prescribed period. The appeal was consequently deemed abandoned by the registrar on February 17, 2026.
They later applied for the appeal to be reinstated.
RioZim opposed the application, arguing that the workers had failed to properly seek condonation for their non-compliance with the court rules.
The Supreme Court upheld RioZim's position, finding that a mere reference to condonation in a draft order was insufficient to cure the procedural default.
"A draft order cannot cure such an omission," Justice Chiweshe said.
The judge noted that the applicants were not without a remedy, as the rules provide a mechanism for reinstatement of an abandoned appeal. However, he said they first had to properly seek condonation for their failure to comply with the rules.
The Supreme Court consequently ordered that the matter be struck off the roll with costs.
Justice George Chiweshe, sitting in chambers, ruled that the appeal had been deemed abandoned after the applicants failed to pay security for costs within the prescribed period.
"The applicants were required to seek condonation for their non-compliance… They failed to do so. Their application is therefore fatally defective and ought to be struck off the roll," Justice Chiweshe said.
The Zimbabwe Diamond and Allied Minerals Workers Union, together with employee Precious Mwanza and former employee Owen Kapeta, had approached the High Court seeking corporate rescue for RioZim.
The applicants argued that the mining company was financially distressed and that corporate rescue would help protect workers and preserve the business.
The High Court dismissed the application after finding that the union and the two employees did not have the necessary legal standing to institute the corporate rescue proceedings.
The applicants subsequently appealed but failed to pay security for costs within the prescribed period. The appeal was consequently deemed abandoned by the registrar on February 17, 2026.
They later applied for the appeal to be reinstated.
RioZim opposed the application, arguing that the workers had failed to properly seek condonation for their non-compliance with the court rules.
The Supreme Court upheld RioZim's position, finding that a mere reference to condonation in a draft order was insufficient to cure the procedural default.
"A draft order cannot cure such an omission," Justice Chiweshe said.
The judge noted that the applicants were not without a remedy, as the rules provide a mechanism for reinstatement of an abandoned appeal. However, he said they first had to properly seek condonation for their failure to comply with the rules.
The Supreme Court consequently ordered that the matter be struck off the roll with costs.
Source - Zimlive
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