APPEAL AGAINST ESWATINIBANK DISMISSED

MBABANE – Eswatini Development and Savings Bank (EswatiniBank) has again won against Lubombo Property Group Limited.

The Supreme Court on Monday ordered Lubombo Property Group Limited to pay EswatiniBank E53 212 735. 80, The company had approached the Supreme Court after the High Court issued a summary judgment directing it to pay a total of E53 212 735. 80, it borrowed from the bank at different instances during the construction of the Siteki Mall. The judges of the Supreme Court, who dismissed the appeal are Jacobus Annandale, Chief Justice Bheki Maphalala and Stanley Maphalala.Other appellants in the matter were Norman Sigwane and Mbhuti Dlamini.

Judgment

Respondents were the bank, Timothy John McSeveny, Nicholas Charles McSeveny and Colin George Ries. The judgment is also victory for the three aforementioned respondents who were minority shareholders in the company. In its judgment, the Supreme Court judges noted that there were many accusations from both quarters wherein the company directors blamed each other for their misfortunes.“All of this might become subject to future litigation between them but as things stands, we agree with the learned judge a quo (High Court) that even comprehensive analysis, the cause of action stated in the summons did not require referral to trial in order to ascertain the existence or otherwise of triable defence, bona fide or not,” said the Supreme Court judges. It was further the finding of the Supreme Court that, the High Court rightly concluded that from the available material before the court, summary judgment was justified. 

The court said the explanation which was offered as to how it came about that they (directors) were also sued as defendants by the bank fell on fruitful soil. “It must be recalled that stakeholders in a company with limited liability remain exposed to the fortunes and woes of the company to the extent of their unpaid shares, hand in hand with the loss of value of all shareholding,” reads part of the judgment.The court also noted that there was also a mortgage bond over fixed property which would feature in the process of execution, as well as other instruments on which the bank would rely on.

Performance

According to the bank, as security for the due performance of their (defendants) obligations in terms of the loans agreements, the defendants offered first mortgage over Portion 149 and 140 of Flame Free Park, Siteki and assured that upon completion of the mall, the property would have a market value of E86 794 000.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: