NINE Chinese have applied for leave to commence proceedings against Kingphar Company Zambia Limited, under business rescue, to challenge the decision by Lusaka lawyer Lewis Mosho to terminate their contracts of employment without notice.
Wang ShunXue, Yang Yuag, Qiao Hongxian, Wang Zen, Zhu Hulin, Zhang Miao, Zhang Zhuanle, He ZhiHong and Zhang Chunci who have sued Kingphar Company Zambia Limited want ex parte leave to commence proceedings against a company under business rescue proceedings.
In an affidavit in support of originating summons, Wang Shunxue, a shareholder of Kingphar until May 12, 2020 when he was managing director and the other plaintiffs were employees of the firm, said Kingphar on April 21, 2020 was placed under business rescue by way of consent judgment under cause No. 2020 /HB/15 and Lewis Mosho was appointed business rescue administrator.
Wang said his employment and that of others was terminated by Mosho without giving them notice, neither did he give a reason for the termination.
He argued that such was not in compliance with the law.
“We seek to commence legal proceedings against the defendant. Unless leave is granted to commence proceedings, the plaintiffs will suffer prejudice,” submitted Wang.
Meanwhile, Kabwe High Court judge Isaac Kamwendo on Monday stayed the same consent order he had granted in April this year against Kingphar which placed the firm on liquidation and appointed Mosho as business rescue administrator.
This followed a complaint letter to Chief Justice Irene Mambilima by Kingphar shareholder Wenxiu Pan, on the questionable way in which the firm was placed under liquidation.