Commercial Registry - 2020

31 judgments

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31 judgments
Citation
Judgment date
December 2020
Failure to file mandatory accompanying documents with originating process is an irregularity warranting setting aside.
High Court Rules — Order 6(1) (as amended by S.I. No. 58 of 2020): mandatory attachment of statement of claim, list/description of documents, list of witnesses, and letter of demand — non‑compliance amounts to irregularity; registry acceptance does not cure breach; court power to set aside originating process
28 December 2020
Written design-and-build contract; variation permitting owner-purchased materials; breach and negligence for building without approvals; refunds for borehole and fittings.
Contract law — written design-and-build lump-sum contract; parol evidence and collateral variation; variation by mutual agreement and consideration; forbearance vs variation; construction law — implied term and duty to obtain planning/building approvals; negligence for commencing works without statutory permits; remedies — damages and refunds for breached ancillary oral contracts; counterclaim failure for lack of particulars and evidence.
16 December 2020
Signed financing agreement constituted an admission of K1,277,367 enabling judgment on admission and damages for breach.
:[
4 December 2020
November 2020
Claim for commission dismissed: plaintiff failed to prove agency or partnership and did not discharge the burden of proof.
Company law – corporate personality; Agency and partnership – oral agreements and actual authority; Burden of proof in asserting agency/partnership; Privity of contract; Claims for commissions without formal appointment.
24 November 2020
A receiver's termination under a deed was lawful; remuneration requires proven recoveries, while qualifying expenses are secured and payable from charged assets.
Corporate Insolvency Act — appointment and revocation of receivers under deed of appointment; termination-by-notice clauses; receiver's remuneration contingent on recoveries; statutory/regulatory fee caps and freedom of contract; expenses incurred by receiver treated as secured claims with priority under section 20(4).
3 November 2020
October 2020
Business rescue commenced within pending winding‑up by a non‑party without notice to appear was irregular and set aside.
Corporate Insolvency Act; business rescue proceedings; locus standi of shareholder/director; Companies (Winding‑Up) Rules 2004 Rule 10(1); procedural irregularity; commencement of proceedings; originating notice of motion in pending winding‑up; ex parte order set aside.
14 October 2020
Contempt application dismissed because the injunction's prohibition to "interfere" with the contract was ambiguous.
Contempt of court; injunctions—terms must be clear and unambiguous; "interference with contract" ambiguous when directed at a contracting party; jurisdiction under Order 52.
13 October 2020
Slip rule is limited to correcting clerical slips; a party dissatisfied with a costs order must appeal, not seek amendment.
Civil procedure — Slip rule (Order 20 r.11) — Correction of clerical mistakes only — Interpretation or amendment of judgments not permitted to alter substantive costs orders — Costs — Appeal remedy.
6 October 2020
September 2020
Third-party mortgage upheld; later further charge and guarantee found forged and unenforceable; bank entitled to judgment and foreclosure.
Mortgage action – third-party mortgage enforceability – misrepresentation – handwriting expert evidence – validity of further charge and deed of guarantee – bank's duty to advise surety – foreclosure and cumulative remedies.
20 September 2020
Plaintiff's late compliance triggered dismissal for want of prosecution, while defendant's third-party proceedings continue independently.
Civil procedure – dismissal for want of prosecution – effect of dismissal – Order for further directions – third-party proceedings survive dismissal – independent lis – fresh action not barred.
11 September 2020
Court entered judgment on admission where defendant's pleadings and correspondence plainly acknowledged the debt.
Judgment on admission — Admission in pleadings and correspondence — Requirement that admission be clear, unambiguous and unequivocal — Counterclaim or draft forensic report does not automatically bar judgment on admission — Orders XXI HCR & Order 27 RSC.
7 September 2020
August 2020
Illegality defence rejected; respondents must refund monies received and face damages for fraudulent misrepresentation.
Contract law — Illegality defence; unjust enrichment — money had and received; fraudulent misrepresentation; assessment of damages; counterclaim dismissed for lack of proof.
30 August 2020
July 2020
A later suit by associated persons may be stayed until costs awarded in an earlier related action are paid.
Civil procedure – Stay of proceedings pending payment of costs – Subsequent action founded on the same cause of action may be stayed until earlier costs are paid – Order 40 Rule 8 – Associated parties and identical cause/subject matter – English authorities Martin v Earl Beauchamp, James M'Cabe.
27 July 2020
Clear admission in defence justified entry of judgment on admission for unpaid purchase moneys with interest and costs.
Commercial procedure – Judgment on admission – Order XXI r6 HCR and Order 27 r3 RSC – Clear or unequivocal admissions in pleadings – Sale of equipment and variation – Unavailability of inability-to-pay defence – Contractual remedies and interest.
13 July 2020
June 2020
Secured creditor proved loan and mortgage but seizure of movable collateral without express contractual consent and court order was irregular.
Security interests – Movable Property (Security Interest) Act s.72(3) – Requirement of express contractual consent to relinquish possession without court order – Validity and enforceability of freely executed loan agreements – Consequences of unlawful seizure and auction of movable collateral.
25 June 2020
17 June 2020
Whether alleged post‑incorporation share allotments complied with the Companies Act and whether K20,000 was improperly withdrawn.
Company law — share transfers and allotments — compliance with Companies Act and Articles — requirement for transfer instruments, share certificates, notice and certified resolutions — invalidity of unproved allotments and unauthorized withdrawals — restoration of register and preservation of funds.
4 June 2020
May 2020
Deposit of title deeds creates an equitable mortgage entitling lender to foreclosure nisi, then absolute foreclosure if unpaid.
Mortgage law – Equitable mortgage by deposit of title deeds – Borrower identity – Default and outstanding debt – Remedies of equitable mortgagee limited to foreclosure (no statutory power of sale or automatic possession) – Enforceability of contractual interest.
18 May 2020
Court entered judgment on admission for unpaid invoice, ordered interest and three monthly instalments with acceleration on default.
Commercial procedure – Judgment on admission; Order LIII r.6 High Court (Amendment) Rules S.I
No.27/2012 – failure to specifically traverse allegations deemed admission – admission of indebtedness – interest at short-term deposit and Bank of Zambia lending rates – instalment payment with acceleration on default; Practice Directions; China Henan precedent
12 May 2020
Buyer entitled to damages and reimbursement after seller delivered a non‑operational refurbished rig late; counterclaim dismissed.
Sale of Goods Act 1893 – concurrent payment and delivery – implied condition of fitness for purpose (s14(1)) where buyer relies on seller’s skill – express warranty breach – remedies: damages and reimbursement of repair parts – insufficiency of evidence for loss of revenue/reputation – dismissal of counterclaim for exchange losses.
11 May 2020
April 2020
A power of attorney does not permit the donee to commence a representative suit in the donee’s own name; proceedings must be in the principal’s name.
Civil procedure — Representative actions — Whether power of attorney confers locus standi to sue in the donee’s own name — High Court Act s.10(1) — Application of Rules of the Supreme Court (Order 6, attorney plaintiff).
30 April 2020
High Court dismissed defendant's res judicata objection and struck out attempt to set aside Court of Appeal consent order; costs awarded.
Civil procedure – res judicata – five-part test; Order 14A – conditional appearance equals notice of intention to defend; jurisdiction – High Court cannot set aside consent order approved by Court of Appeal; application dismissed with costs.
9 April 2020
Whether leave of court was required to sue companies in liquidation and whether the claim was time‑barred.
Civil procedure – Order 14A RSC – preliminary issues; Corporate Insolvency Act – ss.66 & 98(2) – leave required before suing companies in liquidation; Liquidation procedure – application of Corporate Insolvency Act via s.138; Limitation – provable debts in liquidation suspend six‑year limitation; Banking and Financial Services Act relevance clarified.
7 April 2020
High Court has jurisdiction to grant leave to appeal interlocutory rulings; Court of Appeal Act and Rules govern appeal procedure.
Appeal — interlocutory rulings — leave required under s.23(1)(e) Court of Appeal Act; 'judgment' includes 'ruling' — Court of Appeal Act and Rules govern appeals; High Court Rules’ 14‑day provision inapplicable to appeals to Court of Appeal.
6 April 2020
A facility letter placed insurance duty on the applicant; respondent liable for service lapses—nominal damages and an audit ordered.
Contract interpretation – facility letter – insurance obligation on borrower; Privity of contract – non‑party landlord has no claim; Banking law – duty to supply services with reasonable care and skill (Competition & Consumer Protection Act) – system irregularities and wrongful charges; No evidence of unauthorised disclosure to third parties; Remedies – nominal damages and court‑ordered independent audit.
3 April 2020
Proceedings validly commenced before liquidation; subsequent winding-up required leave to continue, so action stayed by operation of law.
Corporate insolvency — s66 Corporate Insolvency Act — leave required to proceed where winding-up order made or provisional liquidator appointed; commencement of proceedings before liquidation — effect of subsequent compulsory liquidation — stay of proceedings by operation of law; arbitration — s10 Arbitration Act — court cannot refer to arbitration where action stayed by insolvency law and no leave obtained.
2 April 2020
March 2020
Non-payment of premiums does not automatically void a life/keyman insurance policy; insurer entitled to time-on-risk premium.
Insurance law — Life/keyman insurance — Effect of non-payment of premium — Tax invoice/debit note as acknowledgement of debt — Waiver by instalment agreement — Time-on-risk premium — Inapplicability of section 76(1) (general insurance) to life assurance.
31 March 2020
Notice-to-complete not valid and vendor lacked title; specific performance dismissed, restitution of K85,961 ordered.
Contract law – sale of land – LAZ General Conditions of Sale: mandatory notice-to-complete procedure; service on named advocates required; Property law – nemo dat quod non habet – purchaser cannot acquire better title than vendor; Equity – unjust enrichment and restitution where contract incapable of performance.
5 March 2020
A section 22(1) application challenging a business rescue resolution is not caught by the moratorium and must be commenced by originating summons.
Corporate insolvency — Voluntary business rescue — Section 22(1) application to set aside resolution — Distinction between a challenge to the decision and proceedings against the company — Moratorium (s25(1)) inapplicable to section 22(1) applications; Procedure — absence of statutory procedure for section 22(1) applications — Rules of the Supreme Court (Order 5 Rule 3) prescribe originating summons; Party captioning — business rescue does not transfer locus standi to administrator — no requirement to indicate 'under Business Rescue Proceedings' in pleadings.
3 March 2020
February 2020
Certificate of practical completion and the employer’s conduct estopped the defendant from denying the construction debt.
Construction contract – certificate of practical completion – defect liability period – architect as employer's agent – estoppel from employer's acknowledgements – counterclaim for defects requires cogent proof.
14 February 2020
January 2020
The respondent (registered proprietor) entitled to injunction against the applicant’s continued use of its registered trademarks.
Trade Marks Act — s7 bars actions by proprietors of unregistered marks for infringement; registered proprietor’s rights (s9, s57) — exclusive use and entitlement to injunction; damages require proof of loss or profit.
20 January 2020