Judicial managers sued over ‘fraudulently’ taxed bill

A shareholder for Pioneer Transport has filed an application for review at the High Court after co-judicial managers allegedly connived with the Master of High Court to issue a “fraudulently” taxed bill.

Lamcent Capital, represented by Mr Lameck Tarupuwa, argue that the US$359 559 bill be converted to the local currency at 1:1 in compliance with the law, whose net effect was to effectively redenominate all assets, debts and liabilities to that value in local currency.

The firm wants the setting aside of the bill taxed by the Master of High Court and by substitution an order issued that the co-judicial managers Mr Raymond Sibanda and Mr Oliver Mtasa resubmit their bill for taxation.

The firm also seeks “an order finding the taxation by the first respondent (Master of the High Court) of 27 January 2021 to be grossly irregular as due process was not followed.

And another “order directing the taxed bill in United States dollars to be re-denominated in RTGS/ZWL at 1:1 as per the provisions of Statutory Instrument 33 of 2019 as codified in Section 22 of the Finance Act 2 of 2019.

“The applicant contends that it was grossly unreasonable and irrational for the first respondent to make decision to denominate the bill in US dollars,” said Lamcent Capital.

“There was a change in the law that affected the denomination of the fees due to the second and third respondents, namely Statutory Instrument 33 of 2019 as codified in section 22 of the Finance Act of 2019.

“The first respondent’s failure to recognise that this obligation actually arose before the change in law and falls into the scope of sums affected by the change in law is grossly irregular and unreasonable.”

Lamcent Capital accuses the Master of High Court of gross procedural irregularity in reaching the decision to tax the bill in the absence of both Pioneer Transport and itself.

The Master of High Court is also accused of bias towards Mr Sibanda and Mr Mtasa.

Lamcent Capital argues that it was not served with a copy of the bill by Mr Sibanda and Mr Mtasa nor informed of the date of taxation. “This was grossly irregular and goes against the standard procedure in taxation of remuneration of judicial managers,” said the firm.

“Further, the first respondent (Master of High Court) did not place the bill before the applicant (Lamcent Capital) or invite the applicant to make any submissions on their views towards the taxation of that bill.

“Clearly, this goes against practice and is clearly irregular. Even the first respondent (Master of High Court) acknowledges that due process was not followed. As a result, the applicant, being an interested party in a dispute regarding the second and third respondents’ fees prior to taxation was denied its audi partem rights to challenge the quantum of the bill as well as denomination in the United States dollars.”

Lamcent Capital submitted that at the time the bill was taxed, Zimbabwe was under lockdown and the office of the Master of High Court was officially not operational.

The lockdown ran effectively from January 2 this year to March 2.

“The applicant submits that Practice Direction 5 of 2021 directs that first respondent should reopen from 2 March 2021,” said the firm. “It, therefore, leaves one wondering how the bill could have been taxed at a time in question and if that was in line with the law at the time.

“The process and procedure adopted is novel to the first respondent and borders on complete bias towards one party. It is almost as if the decision was reached in fraudulent manner.

“Further, the decision to only adopt the view of the second and third respondents in circumstances where the applicant had delivered correspondence to the office of the first respondent showing its contrary position clearly shows a degree of bias on the part of the first respondent.”

A meeting was held at which Mr Sibanda and Mr Mtasa were directed to submit their bill for taxation to Lamcent Capital for consideration of their viewpoints.

Instead, the two did not do that, only to share a copy of the already taxed bill with Lamcent in May this year accompanied by a short explanation on how they calculated it.

The High Court placed Pioneer Transport under judicial management in 2016 and appointed Mr Wesley Sibanda as the judicial manager who passed away in 2018, resulting in the appointment of Mr Sibanda and Mr Mtasa as co-judical managers. -herald.cl.zw