ZCCM-IH objects to Vedanta application over Liquidator’s power

By GRACE CHAILE-LESOETSA ZCCM Investments Holdings Plc has maintained that it is an abuse of Court process for Vedanta Resources Limited to file an application questioning provisional liquidator Milingo Lungu’s  powers to split Konkola Copper Mines Plc  (KCM)  into two subsidiary companies when an order staying proceedings is still in force. This is a matter where ZCCM-IH has petitioned the court to place KCM under liquidation claiming that it was being managed in the 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.  ZCCM-IH seeks to raise preliminary issue on whether the High Court has jurisdiction to hear and determine summons for directions during the stay of proceedings and dispute referred to arbitration by the Court of Appeals. Vedanta through its director Deepak Kumar argued that the application does not constitute an abuse of court process and that the Court of Appeal judgement did not stay the supervisory powers of the court over Mr Lungu. It argued that the ZCCM-IH  preliminary motion is incompetent as section 60 (3) of the corporate insolvency Act does not provide for preliminary motions raised by the applicants. But ZCCM-IH in its skeleton arguments filed on Monday stated that Vedanta did not seek a stay of proceedings with reservations in relation to the provisional liquidator nor was the same granted by the Court of Appeal.