The High Court has dismissed an application by a United Kingdom-based company -- Strauss Logistics limited -- to block the sale of shares and assets in BP Zimbabwe and Shell Zimbabwe.
Although it was not challenged that Strauss Logistics had a pending case for arbitration in which it is claiming a US$20 million debt from BP and Shell Marketing Services, the court found that the respondents cited were not the shareholders.
Strauss had cited BP and Shell Marketing Services, BP Zimbabwe and Shell Zimbabwe as respondents.
But it emerged that BP Africa Limited and Shell Petroleum Company, which are based in the UK were the ones selling the shares and properties in the local companies.
The two parent firms that equally hold shares in BP Zimbabwe and Shell Zimbabwe were never cited as respondents in the application and on that basis, the court could not grant the application by Strauss.
Justice Bharat Patel presided over the dispute.
Mr L Cook of Atherstone and Cook appeared for Strauss while Mr Edwin Manikai of Dube Manikai and Hwacha represented BP and Shell Marketing Services, BP Zimbabwe and Shell Zimbabwe.
Justice Patel ordered Strauss to pay the costs of the suit.
"I make it abundantly clear that the intended sale relates solely to second and third respondents (BP Zimbabwe and Shell Zimbabwe).
"Only BP Africa and Shell Petroleum can dispose of their shares in the second and third respondents (BP Zimbabwe and Shell Zimbabwe) while only the latter can divest themselves of their shares in the first respondent (BP and Shell Marketing Services).
"The three respondent companies obviously cannot sell shares in themselves.
"As regards the shares held by BP Africa and Shell Petroleum in the second and third respondents, the former companies should have been joined as parties.
"On the facts of this particular case, it does not suffice to simply serve a provisional order upon them without having afforded them an opportunity to be heard in the first instance.
"It follows from all the foregoing that the applicant has failed to establish a prima facie right entitling it to the interdictory relief that it seeks.
"The application for a provisional order therefore, cannot succeed on the papers before me," ruled Justice Patel.
Strauss, BP and Shell Marketing Services in December 2007 entered a supply agreement in which Strauss was to supply refined petroleum products.
However, a dispute arose between the parties over reconciliation of the amount of fuel supplied over a certain period of time.
Strauss claims that BP and Shell Marketing Services owes them 19,5 million litres of fuel valued at US$20 million.
Strauss' auditors confirmed the value of fuel in question and the matter was referred to mediation.
The two later referred the claim for arbitration together with a counter-claim by BP and Shell Marketing Services for storage charges.
The claims have not yet been heard.
|
