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Harare High Court

Housing Corporation of Zimbabwe (Private) Limited v Zimnat Lion Insurance Company (Private) Limited and National Social Security Authority

HH 579/18

Case Details

Court
Harare High Court
Date
26 September 2018
Citation
HH 579/18
Neutral Citation
[2018] ZWHH 579
Outcome
unknown
Case Type
Urgent Application

Bench

Presiding
Muremba J
Full Bench
Muremba J
Areas of Law
Contract LawCommercial LawArbitration Law
Keywords
Performance bondInterdictHousing off-take agreementArbitrationFraudulent demand
Tags
Performance bondInterdictArbitrationHousing developmentContract dispute
legislation
Statutes Cited
  • Constitution of Zimbabwe Amendment (No.20) Act 2013
  • High Court Rules, 1971
  • High Court Rules, 1971
  • High Court Rules, 1971
ai analysis
Case Summary

Key Issues

  • {"issue_text":"Whether the application complied with Rule 241(1) of High Court Rules","issue_type":"procedural","dispositive":"no","related_facts":"Form used was hybrid of Form 29 and 29B"}
  • {"issue_text":"Whether the matter was urgent","issue_type":"procedural","dispositive":"no","related_facts":"Applicant acted after bond was called on 25 July 2018"}
  • {"issue_text":"Whether the draft order was defective for referring to non-existent arbitration","issue_type":"procedural","dispositive":"no","related_facts":"Arbitration proceedings had commenced by hearing date"}
  • {"issue_text":"Whether applicant adopted wrong procedure by approaching court instead of arbitration","issue_type":"procedural","dispositive":"no","related_facts":"Performance bond clause allows court jurisdiction; clause 27:11 permits interim relief"}
  • {"issue_text":"Whether interdict should be granted to prevent payment on performance bond pending arbitration","issue_type":"mixed","dispositive":"yes","related_facts":"Dispute over breach exists; financial consequences if payment made; balance of convenience"}
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background
Facts of the Case

Background

The applicant (developer) and second respondent (NSSA) entered into a housing off-take agreement for 8000 housing units, with a US$16 million performance bond from the first respondent (Zimnat). When NSSA demanded payment alleging breach, the applicant sought an interdict claiming the demand was fraudulent as 53 units had been delivered and disputes were pending arbitration.
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