LUSAKA lawyer Nicholas Chanda has urged government to comply with the order of the South Gauteng High Court in Johanesburg, which barred ZCCM-IH from winding up the mining firm by halting proceedings before the Lusaka High Court.
Chanda said the government should not focus on the issue of jurisdiction as it was bound to heed to the order of the South African High Court and cannot claim immunity to jurisdiction as regards the International Arbitration Act, to which it was a party under the shareholders agreement.
He sad the government should instead apply to have the injunction granted to Vedanta set aside.
Government argues that the ruling of the South African High Court cannot be enforced in Zambia as it had not undergone the reciprocal registration process.
Minister of mines Richard Musukwa said foreign judgments were not enforceable in Zambia until a rigorous process was undertaken.
He said to that effect, he SA order had no impact on the winding up proceedings of KCM in Zambia and that the Attorney General Likando Kalaluka will appeal the ruling of the South African Court.
In this matter, Vedanta Resources Holding Limited sued ZCCM-IH and its provisional liquidator Milingo Lungu in the South African High Court and sought an interim order that the minority shareholder, ZCCM, breached the shareholders’ agreement by pursuing winding up proceedings against KCM in Zambia and directing it to withdraw the proceedings and removing Milingo Lungu.
Vedanta was on July 4, 2019 granted an ex-parte order by the South African High Court for leave to institute an urgent interim interdict (injunction) against ZCCM and Lungu.
Vedanta had claimed that the winding up of KCM has nothing to do with its insolvency but a dispute between shareholders’ agreement.
However, ZCCM said that the South African court was interfering with proceedings before court in a different sovereign state.