Lusaka judge halts KCM winding up proceedings

…….. Vedanta takes the matter to SA High Court
By Staff Reporter
THE Lusaka High Court has halted the proceedings in which ZCCM- Investment Holdings wants Konkola Copper Mines to be wound up for being insolvent.
And KCM’s majority shareholders Vedanta Resources Holdings Limited has obtained ex parte order in the  High Court of South Africa granting it leave to institute an urgent interim  interdict application  against ZCCM-IH  and KCM provisional liquidator Milingo Lungu.
Lusaka High Court judge Anessie Banda-Bobo put the proceedings before her on hold yesterday to allow for the inter parte hearing on the application by Vedanta to stay proceedings and refer the matter to
Arbitration pursuant to section 10 of the Arbitration Act of no.19 of 2000 of the laws of Zambia.
Judge Banda-Bobo has set July 29 for inter parte hearing.
Meanwhile, before the High Court in Johannesburg, Vedanta have commenced an action and served the urgent application on  both ZCCM-IH and Lungu.
In the action, Vedanta is seeking an interim  order declaring that ZCCM-IH  has  breached the KCM shareholders’ agreement by pursuing winding-up proceedings against KCM in Zambia.
They also want the South African Court to direct ZCCM-IH to withdraw the winding up proceedings and remove Lungu as the provisional liquidator.
Vendata stated that if the urgent application set for hearing on July 16 succeeds and an  interim order is granted, the order should remain in place until the Arbitration to be instituted  in due course has been finally resolved.
Vendata stated that it  approached the South African High Court based both on agreement to arbitrate contained in the KCM shareholders agreement , and the selection of Johannesburg as the  seat of arbitration .
And judge Banda-Bobo said she had been made aware of the South African case  although she did not know the nature.
She advised parties to be careful in the manner they commence the matters as they risk to be in contempt of court.