The Court of Appeal has dismissed an application by Konkola Copper Mines (KCM) Plc, seeking to halt further execution and sale of its seized assets by Copperbelt Energy Corporation (CEC) in a bid to recover an $11.8 million debt.
Court of Appeal Judge Annessie Banda-Bobo ruled that the application was improperly before the court, stating it should have been made first to the High Court, which issued the initial enforcement order.
“Having found thus, I deem the applicant’s (KCM) application for a stay of further execution and sale of seized goods incompetent and it is dismissed accordingly,” Judge Banda-Bobo stated.
She further discharged the ex-parte stay that had temporarily paused the sale of seized assets.
The ruling was from a debt dispute under the Creditors’ Scheme of Arrangement.
On June 28, 2024, the Lusaka High Court directed KCM to pay CEC $11.84 million as the first installment of a $29.6 million debt.
After KCM failed to comply within the stipulated 10 days, CEC obtained a Writ of Fieri Facias (Fi-Fa) on March 17, 2025, prompting the Sheriff of Zambia to seize KCM’s assets to enforce payment.
CEC subsequently applied to the Court of Appeal to discharge an ex-parte stay of execution granted to KCM on March 18, 2025.
KCM had sought the stay pending determination of an ongoing appeal related to its classification under the scheme of arrangement.
However, the Court found that KCM had not demonstrated any special circumstances that would justify bypassing the High Court, as required under Order 59 rule 14(4) of the Rules of the Supreme Court.
The Court also noted that KCM had not previously sought a similar stay before the lower court, nor had it provided reasons why such an application would have been impracticable.
Judge Banda-Bobo held that the Court of Appeal lacked jurisdiction to hear the application, emphasizing that it was the High Court, as the issuing court of the writ of execution, that held jurisdiction in the first instance.
Consequently, the ex-parte stay was lifted, allowing CEC to proceed with the sale of KCM’s seized property to recover the outstanding amount.
Costs were awarded to CEC, to be taxed in default of agreement.
The debt enforcement follows a December 2, 2024, ruling by High Court Judge Charles Kafunda, who reaffirmed CEC’s right to receive payment as a Class 2 creditor under the approved Creditors’ Scheme of Arrangement.
The Judge dismissed KCM’s argument that its pending appeal should delay payment, ruling that no stay had been granted by the Court of Appeal.
Judge Kafunda criticized KCM’s reliance on ongoing legal proceedings to delay payment, asserting that the appeal did not affect the validity of the debt.
He further dismissed KCM’s claims of new evidence and allegations that CEC had taken conflicting legal positions in different matters.
On March 7, 2025, the High Court dismissed all of KCM’s applications for review and stay of execution, reaffirming CEC’s right to recover the funds.
The seized amount, equivalent to K338.9 million at the time, will go toward satisfying the first installment of the outstanding debt.
Kalemba April 14, 2025