VEDANTA Resources Limited has applied to have the Konkola Copper Mines (KCM) liquidation case dismissed on grounds that ZCCM-IH is in continued breach of the dispute resolution provisions of clause 24 and 26 of the Shareholders Agreement.
The company further notes that following the ruling of the Arbitral tribunal, the grounds relied upon by ZCCM-IH in the petition and the accompanying verifying affidavits before court should be struck out, the petition should be dismissed and the provisional liquidator of KCM be discharged.
This is a matter in which ZCCM-IH petitioned the Lusaka High Court, seeking an order that KCM should be wound up for engaging in tax evasion and being managed in a manner detrimental to its interest, among other allegations.
According to summons for an order to strike out and or dismiss the petition pursuant to section 60(3)(f) of the corporate insolvency Act No.9 of 2017 and Section 13 of the high court Act, filed in the Lusaka High Court, Vedanta director and company secretary Deepak Kumar stated that according to the partial final arbitral award, ZCCM-IH breached and is in continued breach of the dispute resolution provisions of clause 24 and 26 of the Shareholders Agreement.
According to the affidavit in support, Kumar stated that on July 26, 2021, Vedanta filed an application for the registration and enforcement of the final award in the commercial division of the High Court.
He added that the deputy registrar on July 30, 2021 granted Vedanta leave to register the partial arbitral award in Zambia and following its registration, it is therefore binding on ZCCM-IH and has full force and effect of a judgement of the court.
Kumar told the court that following the ruling of the Arbitral tribunal, the grounds relied upon by ZCCM-IH in the petition and the accompanying verifying affidavits before court should be struck out, that the petition should be dismissed and the provisional liquidator of KCM be discharged.
“The Partial Final Arbitral Award having been made in Johannesburg South Africa is capable of enforcement and execution in South Africa and has neither been set aside nor suspended in Zambia or Johannesburg South Africa,” stated Kumar.
“That pursuant to the partial final award dated July 7, 2021, in the arbitration proceedings between inter alia the petitioner and the contributor, all the facts and grounds relied upon by the petitioner as set out in the petition and the accompanying verifying affidavits are matters which are squarely within the dispute resolution clause of the shareholders agreement and as such, the arbitral tribunal is the only competent forum for dealing with any dispute within the parties.”
He urged the court to further dismiss the petition for not disclosing any reasonable cause of Section 57 of the Act and also have the provisional liquidator of KCM discharged.