HH 201-18 JEFT MARKETING (PRIVATE) LIMITED versus REDAN ENERGY PETROLEUM (PRIVATE) LIMITED and Anor

JEFT MARKETING (PRIVATE) LIMITED

versus

REDAN ENERGY PETROLEUM (PRIVATE) LIMITED

and

SAKUNDA PETROLEUM (PRIVATE) LIMITED

T/A PUMA ENERGY

 

 

 

HIGH COURT OF ZIMBABWE
TSANGA J
HARARE, 29 March & 11 April 2018

 

Opposed application

 

TG Mboko, for the applicant
S Dhlakama, for the respondents

 

TSANGA J: This is an opposed application in which the applicant seeks to have a decision of the arbitrator set aside in terms of s 34 of the UNCITRAL Model Law, on the grounds that it offends public policy. The arbitrator’s decision is to the effect that the applicant is liable to the respondents for the payment of specified sums of money and to vacate certain premises used in the conduct of fuel business. The background facts to the arbitrator’s decisions are as follows.

The applicant is a company formed by former employees of the respondents as a means of empowerment pursuant to their retrenchment. The respondents are in the fuel business. Pursuant to the realisation of the goal of empowering former employees, a “Licence Agreement” was entered into between the parties for the conduct of the fuel business for which purposes the applicant had been set up. Under that agreement a bank guarantee of the US$100 000.00 was to be furnished by the applicant. It was the obligation of the applicant to furnish this guarantee. The applicant encountered difficulties securing the guarantee from BancABC. Pending the quest for the supply of this guarantee from NMB bank, an “Interim Arrangement” was entered into for the supply of fuel under consignment.

 

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2018