Firm seeks to recover land from defunct AfrAsia Bank

Source: Firm seeks to recover land from defunct AfrAsia Bank | Newsday (News)

A LOCAL firm, Drummond Zimbabwe Holdings (Pvt) Ltd, has petitioned the High Court seeking an order to be allowed to file litigation against AfrAsia Bank Limited, a subsidiary of Mauritius-based AfrAsia Bank Limited (ABL), which was placed under liquidation by the Reserve Bank of Zimbabwe (RBZ), with a view to get back its land in Bulawayo.

BY CHARLES LAITON

In its court application recently filed at the High Court, Drummond cited AfrAsia Bank Limited and the Deposit Protection Corporation (DPC) as respondents.

The firm said DPC, as the former’s liquidator, was reneging on an agreement to transfer the land back into its name and to provide the consent for cancellation of the mortgage bond between Drummond and the defunct bank.

“This is an application seeking to institute legal proceedings against the first respondent (AfrAsia Bank), which is under liquidation. In terms of s213(a) of the Companies Act, no action or proceedings shall be proceeded with or commenced against a liquidated company except by leave of the court,” the firm said.

In its founding affidavit, the firm said on May 11, 2017 it approached DPC, proposing the sale of stand number 5043A, Bulawayo Township measuring 4 124 square metres, which AfrAsia Bank had bonded and was holding the physical title deeds to.

Following several correspondences, Drummond said it realised it was not making progress despite DPC’s promise to have the matter resolved, prompting it to approach the court for recourse.

“To date, the second respondent (DPC) has failed to provide the consent for cancellation of the mortgage bond and effect transfer, but no reason has been proffered to the applicant despite demand,” the firm said.

“At this stage, the applicant has exposed itself to suffer loss of rental income on a directive made by the second respondent to sign and enter into an agreement of sale and further incurring the cost of acquiring a new bank guarantee, which expired on November 30, 2018. The buyer remains in occupation of property without recourse of eviction that the applicant can rely upon.

“It is respectfully submitted that the applicant has established good and sufficient cause for leave to be granted as the second respondent, in its capacity as the first respondent’s liquidator, willingly consented to the agreement of sale and further consented to the cancellation of the mortgage bond. In the premises, applicant humbly seeks leave to institute proceedings against first respondent.”

The matter is pending.

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