Chunga Flooring Company Limited v Companies Act Cap 686 (Appeal No. 8/481/88) [1989] ZMSC 134 (9 February 1989)

IN THE SUPREME COURT OF ZAMBIA ;:: Appeal No. 8/481/88 HOLDEN AT LUSAKA -· ; ; · 1 • ·• ·, 1 '.• ._ ,. ,.:-~ ·:, J, 01• ! !~ ~ " •r:~:,,, .:~ ,-,,-'= ::.·. ;·~ ·:-•_;·.~ _"'•~~· ·t:• (; (.'~r~)._!,;,.!;;~.•~~-1 .• \,{1 t~':i~ . l . .' . t.• ~;P:~· ~_; l ~ l;:'J v:~ (~Ht.rr .,.r~ ~ ;·.t! ;· ~,~; CHUNGA FLOORING COMPANY LIMITED- · · Appellant:·_ .· :··,-.. !_~~r.:.nl ~ -~f;. : and •. · ·: · .'i >, ·;; / ·_:.:• .. Y1 ii'.;,: •.- 1:>:--!·,;, -.:: ' :::1 ·"c.11e _ , - · ; .. C(ll1J>ANlES ACT CAP.-- ~6 '.- ·;_•. ""d~::; , 7{:-;"· :.!!\~ f." .. "" :"'~1r{~c-1 r .. _ · . · · Respondent · ·· ·: ~ , : :--· I <. , ~ l . ,: 1:,: · •,,1•1 ', • CORAn: Ngulube, Q,. C. J •• Gardner, . J~S. a~ j~h~Ua, ' J. S. ; _:. ," :·:';, i'.,:: · i· : 9th ,February-, ·:1959 1 · '>::: ,.:~--.: ~.:, I M. S. Banda, Messrs Martin Banda and Company, for the appellant . F. H. M. Hamakando, Messrs Ticklay, Hamakando and __ Company, for. the responde . . . . . - • •. • • ... : ~ ·; ~= ' ,.! ,'d? .. ~.,r .. _./ ·,.·:~ ;. -,, .. ,. ~<~1~:·r -!!ir: ,,,(~r.l. ~ . i.u~_:,? =~- iti~J_U..::D.:Et11E1NJ~; ;~i-r:~ ... t.i#.,ti. lo ~r.:,JX'lf.~·:_lj)~ . • f 4 , , •, f • >, ( ~ ♦H : • ••~t•"': -,, f , ..f'• •~ ·1 J'l •:,~~4·"',t!,:1• Ngulube, D. C. J., delivered the judgment of the court ' •. •.• • • • • • I I ·'•\-~, . . . \t\•"'--1,.:.,. ~ • ·• •• ~.. •• ... -:'·* , ... :, ·!t !·!",, ._,,;$ .t~ ~ ' .. • .... ..... ' • :· . ~ .... ,i :··: :-.. ~~-~,•; I ..... ' : I • ' . • I" , ,, ·• • • • • ,f,/1"1 • .• I'..-, (1) , ••.,t:, .)!' 1•r • ,; •• (, f l"": \ j t 1r ,~<; t\1'" Cases Referred to: , =r • ...... i,J···H~:.r. J'.·d.· t'.1;1~:-~ t:-n,;r~·:tn1~)';) _'i<,i lil~'.'·\_:~·,,:;. :_ . O. E. Nkhuwa :and··{usa°i<a:'. { re*strvt~~1:·~~97(>;.1~-~3:•~~f1~~-t.}"J': .. f:~- •:::\1•1 (2) Nahar Invest~_~nt L_im1~:~:d .-'-v:, ..• ~~1•~\~;a,} B~n.~?rl;.:r~~tf~~~~ J~l: . l;;~~- ~fUfra ;;t~t~ 'Wilti'.~}\~ti.j .(.;;' (lf~~f . .,.~~~:·r&•!'~:- 1, In this . appea I~-thei" appe 11 ant'! has ·1 aj>p 1 '1 e:d~ t~·-::,th~ ! coort\ s'i tt in1*: 1:~·1. in open court to vary the :decision ~of',ai"·s1ngle~:judg~ ~f:tth.is c6urt!¥,(~ at chambers dismissing ·the •appeal ' for want of· :prosecution' . . The (\iS}~! record shows that on 14th,-Apri 1·;(;1988-' there was:- filed :, fn• the · Supreme Court registry a notice·.=oPappea:l which had::been :,lodged ·with :·thet:ibii Migh Court on 29th February, 1988 'J1n a ·matter :concerning Chunga · Flooring Coptpany Umited ' wherein the applicant, Chariie\~ell'· Kakwenf;'.: Chunr:1 , sought to appeal ! ag~inst·,:the'.-:order made by a:r-·High Court .::_-;t . co,rrnissioner that the af.fa.irs ':-of.-.the·'company' be ':invest-fgated~ :: '. We'\ -':. · understand that meanwhile, , the"substantlve respondents ·to this :appeal (Nho are said to be. shareholders) made an· application _.in the ' H{gh·:- Court for a review of the order which the·· learned _,.corrmi ss ioner· had '·: :. ·' ; made wl1ich application was -heard on 28th 'June, (19es:;;:,s'lightly···over· j ' ~ f. '-~ three months later the 'respondents: applied'to7·a~;-·s{ng'le·· j·udge ·of· this:.~ court to dismiss the appeal for want of prose_cution under Rules 54 and 55 of the Supreme Court Rules. The :gr_o!-ln~ J. Qr .. ~e-·appl ic~~i~n : · . ... · :. ·• ...... ., . ... ... • ·'. ·>~- • I. ,t ', ', ~- . . ., • ~ 'l• ; ,♦ . . . •. • • . . . . . " • • I . - • • • • • + + • • • • • • • • • -. .· •, ' ~I ~ .. ~ •. '. . ~ . was ••• 1 • J2,· , t • • I • • • I I • • • ._ •• • i • " • , , I ' .' . . . •• • ;;; . . • ·• ~ , ... ~ / 1•• •.-:, fl l . •· ' . ~1·~ "" ' . . •..• 1•· ._:vat ,,.~.c ~ , . ,. -~- v·• ( • "' '1,' . J •;'j J;', 'ti';' . f · .'rwas' that the appellant had· not· lodged a ,record 'of" appear• wl th1n1 sixty days of the entering of the notice.- · There was · no· opposition to the'- application because counsel for the appellant did not attend1at the ~-1 hearing of the sumnons. · The explanation which·· has been :91.ven ~m: ~a~h_ in an affidavit sworn by counsel was that· the .surrmons to. dismiss. was ·• only received after an order , had -already been made~dismissing ·the-1 appeal for want of prosecution. ·,.- Mr~ Hama,kando~ for,the respon·dents, . d iSputes this contention· and avers f r·om the bar-thatt service was~_H 1, i ro effected by hand and a record made ,in•a delivery•book which he has thought· fit not to· exhibit · to this court, despite' the •dispute·1as: to':o .. ''f1.- l"i'it'fl, t ••:•P .. ,jl1d ir,tfa;o ' service. .• ~";; ~~·~a·1~a tv ,~r. HuiHl:t.arroo. '-·'" ':..!·!ru1.tt~wt10•; · • '# \ ... i-· .... • . We have given careful tconsi°der:ation . to ... ,.th!s .fuatter1and:i~ust point out irmtediately that we; do· not consider-..:that the ' case of·, .s~ d D. E. Nkhuwa -v- Lusaka Tyre. Services 1 (1) can~be·~ci~ed' •in support~of maintaining the order :cof, 'dismissal:· in thist caset ~tNkhuwa concerned I ont .' . , its 0\-m facts, delay which was_· t~uly~t , inorfinate·.-ie \B.ut.th_e·delayYin" . i this· case was at m0st fornonlyj seyen•months.1"\ Eveno~h~s~period~·~~ ~;:.. 1 doubtful having regard~ to;the1,undisputed1ifac~ tha:t; there~ waslaoat1~ . : application made by ,thet r,esp-ondents~which~depr_1 veci~ thei appt'oprlate'¼. staff in the co_urt of1-;the-r.ecord,,of ! proceedings,~for.~purposes~ofel._! ant, prepar'ing transcripts of··.the'•proce~d1ng~' for: a, per.i~d-~t-·least·:up . · to the end of June 1988.·.-·. Thereaf.ter., ,ther.e:1was: ~ydelay of only la.1at!. -:!,1 further three months before :the, respondents:made'ith_ei~- application·; n_. · On behalf of the .appellant, Mr • .-Banda·,has ·explained· that he, ha~(ih.ad ·. di ff icul ty in obtaining the transcript.:,o:f. i.proceedings from :thecH1gh1 . . He has further ~lained ·that •he ~had~.even.:off~red hiwJown Court. secretarial services to .the ~igh Cour.t to--assist. Li~ •.the ·prepar.ation12 ·of the record and thilt; he 1s fwillirig:.even-,: at~ithis,.l,_stage :to offer/'~ . such assistance to the, Higfl1Cour.t. t'ii. Thet•non-avaiilabi11-ty -of. the't. High Court Is transcript iofnthe''rproceedfngs £.iSflnorinal l,Y,. one tr of .-the few .gr9unds · for applying . for£an· exienston:-of. timerto· which ~an lopponento can have ·no ··answer.-f , In ~thiscregard,1~weroear : 1n:mi11d tthat ,1 !while it is the duty ,of counseH,for ~the, appellant lto~prepa-r.e-.:rthe record · of.me1..11tt;:- appeal in terms of Rule :58(6) of.·the rSupreme 'Cour.t_1i:R1Jles'/ none.theless, the second proviso to that subr~Ie makes · it clearrtha~ the respons1bili1 ,, . ' . " . . "•,. I J . ' I>,. •. • " , ; I i \ ';' - : • ' ' 't • • • • • • t • I j• ' .• • • • • I I • t t , for preparing a copy of the notes of h~aring ~t fi~s~ . insta~c~ _rests . . .. . . . . "• . ' .. ,.. ,. . . . . . . . . . . . 3/ : . 4i, . . . upon rip~¥t!?.., t • . ' '', : : . JJ,t : : ··• :' {1"; ..,. ~ ,_.l ' I . I 'I .,_ !. •·._;, \'. ' { ., ~ ., # , , · , ' . · t; \ • . · , , • f \1{, 11 , · , , •• t<" upon the: Regist~-a~t of- the 'Higt?c·oort)!'~ iJEth~'~rtoai~t irr thist··ca~~; (Hd the appei lant hal a' p~rf~ct ly ;re1s1a'nable"f~~pl~!ii"a'.tTb'rir"fo~>the de~ault and tt}at thet'r only' f~ult was in fat ling to make a1' ap~·11catio~ ·for · an extension of time. We wish to repeat WhlJt .we said 1n Nahar Inve·stment;: Limitea -v- Grindlays Bank Internation~l (Z) Limited (2), ~hat· 1t' 1s tl1e duty of appellants to lodge reco·rds ~f -appeal. within· the · p~riod allowed, including any extende.d perio~·!.·, i ,We. did· point: ~ut· in that: · : · · case. that. if there are. reasons why.' the.- :rec·or-di ~arinpt'_ be· I odged · with in the time allowed. such as the non~_av~ila~ilit~ ·o.f :th'? ·n~tes· of : .. :. · proceedings, appellants have a d~ty to make . prompt: ~ppl,ication ·:t~ .t!l~ court .for an · exten~ion of time • . As .wa .war.ned 111 ,.tj1at; .case,. and. ·.ln.d~ed this . \'las a remark which was. re'P,eft1tecC1>y~:Mr.1: H~akanqo..~ ,app.ellapts ··who ,ft r.r.4 It •.,, l ~ l sit back until t~ere is an appllcation to dismiss ·.th/eir appeal' . · · . ,. before making their own frantic application for ".l.n· e);(tension_ do. so a~ · their own peril. Havi~g said. that much. we considert that, on the_,.· ... facts of this case. the delay was :no~ · so ;inordioate··that t he ··appellant'·. ;"( ~ ~= • .,1 f must be penalised.. We also find·lthat,lrsince ,.there was no inquiry at . . the hearing before the single judge as to service of the respondents' · . application a~d since there is no affidavit tQ oppose .the alleg~tion made by Mr. Ba11da on oath-that there ·wa$ no service-it' is impossible . .. ; · for us to say that the si.mmons to dismiss was served qn th~ .appe,llant.: •, We have no doubt in our minis' that. had th,,e r'a(IVO~ate foi:- the ' appellant attended before the single judge and advanced -the explanation· for -the default w~ich has been offered, an··extension:-wouJd have·~Qeen ; .• · granted more or less as a matte~ ~f course. :-. We ·a~•.s·at-~~fied th~t · ~ ( ' ' . ' . .. this is an appropriate case in which to allow the -application and ·to reverse the s·ingle judge_. The application' is allowed;• the order ·' dismissing the appeal ·for f~.,\~ant ·pf pr1..-secuti_on·Js'.;s~t•'aside an:d··the . · . appe-llant granted a period of sixty days. within whicti·- to lodge the record of appeal. With ~egard -t~ the .que~tiorfof ··c~sts, we beaJ" in · mind that th.e appellant· was .. ln defaul_t .and failed ,to ·make· an •. · '.. · application for enlargement of'::ttme .when; ~learly :it was his duty· to · do so before the exp~ration·· of ·the:,period ~llowed~~. C,$' it will~~ >.in · the future if any further extenst~ns will be.required~ At the ·sametl~e. we also bear in mind that, 'on the uncontested clai.m in'Mr. Banda·•s; affidavit, thE,;iespondents di_cf.• flbt ser~e their appitcation on. their ' .:·;_:• . . . (. . • . ·. ., . : . . • # . ·,• r : J •• . • • • . . . • • • • • I . _ ' • • • • • I " , } ' .,.,r .. , • ' . . • • • • : • # • • • - • •• 0 I• , , .•: • • ~ ' . :: 'J I ~ ' 4/ •• ~.~ •••• opponent. · .,. .. ' ' \ , .. I,~ I .:, I .. - . - .. .,, ·---- - ·· r . ·!~'f OF ~:.:.5'r-HA J4 . .. . !1!)£.~.l. JJ.£~_·_. Q[-4J31 /88 , OP,PR~en} . ! .~~ -~~e~e circumstances_, we ·r,eel _that · neith~: part~ $.~o~ld _ have ·the costs at this stage and costs will therefore ~bide the O_) \ ' \: ... I I . . 1 . .,, •' . ' .- . .. t •• •, . ' \'