By GRACE CHAILE
VEDANTA Resources Holdings Limited and the Official Receiver are engaged in an out of court settlement in a matter it sought judicial review, asking the Lusaka High Court to quash the appointment of Celine Meena Nair, as Provisional Liquidator of Konkola Copper Mines (KCM).
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In May, 2022, Vedanta Resources, majority shareholders in KCM, commenced proceedings in the High Court contending that Ms Nair’s appointment was illegal on the basis that she had no authority to make such a decision. Vedanta says she acted from want of authority and consequently her decision is beyond section 65(1) of the Corporate Insolvency Act.
“The Official Receivers’ decision to replace Milingo Lungu as Provisional Liquidator for KCM is illegal and null and void as only the High Court has the power to appoint either the official Receiver or any other person to be Provisional Liquidator of a Company which is pending the winding up petition,” Vedanta Resources submitted.
But when the matter came up this month before Judge Situmbeko Chocho,the court was informed that the parties were engaged in excuria negotiations.
“My lady the parties are nearing the conslusion of the excuria negotiations. However,in the meantime we will proceed to adjourn the matter to allow parties to conclude,” counsel Sampa submitted. Judge Chocho granted the request and adjourned to April 3, 2024, for status conference.
“The parties are advised not to attend Court If they conclude the discussions and settle the matter. Should however the parties not settle and appear before me on the said date unprepared to proceed, I shall dismiss the action.” She said.
The matter was commenced after then KCM Acting Chief Executive Officer Enock Mponda announced the appointment of Ms Nair, a former Principal Legal Officer at Ministry of Justice and Board Member at Zambia Information and Communication Technology Authority.
Vedanta wants the Court to declare her decision to replace Mr Lungu illegal and also an order of prohibition.
It submitted that it was illegal for the Official Receiver to lure Mr Lungu into resigning from his position so that she can replace him.
“By a consent settlement agreement dated 15th March, 2022, made between Natasha Nsanta Kalimukwa the Official Receiver and Milingo Lungu then Provisional Liquidator for KCM, the parties agreed that Milingo Lungu would resign as Provisional Liquidator for KCM with immediate effect and that he would handover to Natsaha Nsanta Kalimukwa-as Provisional Liquidator of KCM pursuant to section 67 of the Corporate Insolvency Act,” it explained.
Vedanta contended that the Official Receiver contravened regulation 2 of the Corporate Insolvency (Forms and Fees) Regulations by her failure to publish in the gazette her appointment to the said position.
It added that her appointment ought to be registered with the Patents and Companies Registration Agency (PACRA) so as to make the public aware of the appointment.
In 2019, ZCCM-IH petitioned the High court to place KCM under liquidation claiming that it was being managed in a manner that is detrimental to its interests.
Among other allegations are evading taxes and for being insolvent and that it has failed to pay outstanding invoices to suppliers and contractors.
But last month, government that Vedanta Resources had returned to its previous role as KCM majority shareholder.
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