DYNAMOS Football Club has won a court case against the Premier Soccer League (PSL) which had said it would hold-on to any funds due to the club from sponsors and gate takings over a $35 853,77 debt owed to Barclays Bank.
BY CHARLES LAITON
DeMbare, through their lawyer Farai Nyamayaro, yesterday filed an urgent chamber application at the High Court, seeking to interdict the PSL from grabbing its funds, arguing the latter was not a debt collecting firm and the order was granted by Justice Jester Helena Charehwa.
The judge ruled: “Pending the determination of this matter on the return date, the applicant (Dynamos) is granted the following relief: first respondent (PSL) is interdicted from holding on to any funds due to the applicant from any source. In the alternative, the first respondent is interdicted from holding on to any funds due to the applicant from any source that are in excess of what is owed to the second respondent pending determination of this matter on the return date.”
The ruling and order by the High Court followed DeMbare’s argument after the PSL had made clear its intention to withhold the club’s funds over the bank’s debt.
DeMbare’s board chairperson, Bernard Mariot Lusengo had filed an affidavit with the application urging the court to bar PSL from taking the action.
“Applicant seeks to interdict the first respondent from holding on to funds due to the applicant from competition sponsors and other sources that are disbursed through it. The first respondent intends to hold these funds on behalf of the second respondent (Barclays),” Lusengo further said the move by the PSL was greatly regretted and urged the court to immediately intervene.
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“The applicant avers that, the decision by the first respondent to hold on to any funds due to the applicant is a grossly unreasonable one and it needs the intervention of the honourable court,” he said.
“The applicant is of the humble view that the first respondent is only an intermediary between sponsors and football clubs, whose sole responsibility is to receive and pass on money earned from competition and collected from gate takings to the respective clubs.” He added: “… the first respondent’s role is simply a facilitatory one and does not create a debtor and creditor relationship with any of the clubs in particular the applicant. In that event the first respondent cannot hold funds that are due to the applicant as it is not the applicant’s creditor and the money does not form a debt between the parties.”
Dynamos say the misunderstanding between the PSL and the club started when Barclays obtained a default judgment against DeMbare in the sum of $35 853,77.
The bank however, attempted to attach DeMbare’s property at its National Sports Stadium offices, but failed, since nothing attachable was found.
On October 13 this year, Barclays then made an application at the High Court for a garnishee order in which the PSL was the garnishee, but the application was opposed by the latter and the matter is still pending under HC9833/15.
Following the bank’s decision to garnishee the PSL, the latter, on November 20 this year, wrote to Dynamos indicating it was going to hold on to any of its funds that were due to it in a bid to secure funds for the bank.
But the clubs’ chairperson urged the court to grant the interdict, saying: “The long and shot of it is that the decision (by the PSL to hold funds) will incapacitate the applicant, who will not be able to fund its day to day operations. The net effect will be to push the applicant into in solvency.”
