High Court judge, Justice Mary Zimba-Dube, last week ruled in favour of a local engineering firm, Vengesayi Architects, and registered the latter’s $476 093 arbitral award, as a court order, paving the way for the engineers to execute judgment against the Zimbabwe Manpower Development Fund (Zimdef).
BY CHARLES LAITON
In her judgement in the same matter, Justice Zimba-Dube dismissed Zimdef’s counter claim, seeking an order setting aside the arbitral award, which was awarded by arbitrator, Mordecai Mahlangu on December 17, 2015.
Notwithstanding several demands, Zimdef is said to have failed to pay the amount due, arguing it was in conflict with public policy to fork out such huge amounts, hence, the filing of a counter claim with a view to have the award dismissed.
However, in her ruling, Justice Zimba-Dube said Zimdef had interpreted the law wrongly by bringing in the issue of public policy in order to avoid paying its debt.
“The respondent (Zimdef) is an entity with a separate legal existence and capable of suing and being sued. It should not mean that whenever a public body loses at arbitration, that award is contrary to public policy,” she said.
“While it is accepted that the respondent is a public body, where a public body has contractual obligations, it cannot escape the consequences of a contract or the effect of prescription simply because it is a public body and deals with public money.
“I must conclude that the respondent has failed to discharge the onus on it to show that the award is outrageously illogical or immoral or that it constitutes a palpable inequality that defies logic and offends the conception of justice. The respondent has failed to show that the award is contrary to public policy thereby entitling the court to set aside the award.”
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The judge further said the engineers had satisfied the requirements for registration of the arbitral award and nothing would stand in the way of its registration.
“The opposition to the registration of the award is devoid of any merit and must fail. In the result it is ordered as follows: The respondent’s counterclaim is dismissed with costs, the arbitral award of M Mahlangu dated December 17, 2015 in the sum of $476 093,92 be and is, hereby, registered as an order of this court,” Justice Zimba-Dube said, adding Zimdef would also pay costs of the matter.
The firm was represented by its directors, Charles Richard Vengesayi and his wife, Agnes, through their lawyer Simplicio Bhebhe.
