AN application by a local company, Total Solutions, seeking to be placed under provisional judicial management on the basis of failing to service debts, recently hit a snag after Engen Petroleum, which is owed over $80 000 by the former, opposed the move and the application was dismissed for want of prosecution by the High Court.
BY CHARLES LAITON
Total Solutions, which is into mining, retailing and wholesaling of stationery and motor spares, is owned by local businessman, Michel Tawanda Jefferson Mhindu.
High Court judge Justice Garainesu Mawadze granted the order in favour of Engen Petroleum, on November 11 this year after Total Solutions failed to pursue the matter further under case number HC7450/2015.
“The application for an order for provisional judicial management which was made by the first respondent [Total Solutions] . . . be and is hereby dismissed for want of prosecution,” Justice Mawadze ruled while slapping Mhindu with costs of the lawsuit.
NewsDay last week was made to understand that Total Solutions was seeking to place Engen under provisional judicial management.
Yet according to the court papers, sometime in August this year, Mhindu, on behalf of Total Solutions, made an application seeking his firm’s placement under provisional judicial management, saying it was operating at a cost and was unable to pay its debts that had ballooned to $361 453.
But Engen Petroleum, through its managing director Cremion Mapfumba, filed opposing papers, urging the court to dismiss Mhindu’s application and arguing Total Solutions was able to service its debt through selling immovable property.
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Mapfumba also indicated to the court that Engen had already instituted legal proceedings against Total Solutions for the recovery of $82 049,55 and judgment had been entered in its favour.
“An immovable property belonging to the applicant (Total Solutions) known as 3 Clearwater Road, Norton, was attached and sold in execution pursuant to that judgment and the Sheriff has declared the highest bidder,” Mapfumba said in his opposing affidavit.
Mapfumba also accused Mhindu of not telling the court the truth as regards the value of his immovable property, saying he was withholding material information to the court or being deliberately untruthful.
“The applicant could, with a minimum of effort, have named the other creditors as well as attached proof of the obligations as well as proof of the bank overdraft. This has, however, not been done, with the applicant settling for a bare averment that its liabilities amount to $361 453,” Mapfumba said.
“I also highlighted that although the applicant claims . . . that its assets comprise, inter alia, buildings which are valued at $40 000, the property to which the writ of execution was issued in favour of Engen Petroleum was sold for $75 000 at an auction . . . Engen takes position that the present application is a mere ploy to buy time and further confound creditors.” Prior to the application for placement on provincial judicial management, Mhindu had filed an application seeking to stay execution of his Norton home. In his application, he pleaded with the High Court, as the upper guardian of all minor children, to intervene and protect his house.
“There are four minors of school-going age, who will be writing exams in a few months’ time, whose lives will be irretrievably prejudiced by the sale and consequent eviction. As the upper guardian of all minor children, the High Court is implored to take the plight of these children into consideration.”
