High Court places Charles Chanda’s company in liquidation, appoint provisional liquidator

THE Lusaka High Court has placed Brook Cherith Estates Agents and Developers limited in liquidation and has appointed Lusaka lawyer Bellington Mosha as provisional liquidator of the company.

Justice Winnie Mwenda said Mosha would manage all the assets, properties and business of Brook Cherith belonging to United Prosperous and Peaceful Zambia president Charles Chanda, during the winding up proceedings.

“Upon hearing counsel for the petitioner and upon reading the Affidavit filed in support herein, it is hereby ordered that Bellingtone Mosha be and is hereby appointed to act as provisional liquidator in respect of all the assets, properties and business of the respondent in the winding up proceedings of the respondent herein with powers of the provisional liquidator as enshrined in the Corporate Insolvency Act No. 9 of 2017,” ordered judge Mweenda.

On January 21 this year, the High Court registrar in a final Interlocutory judgment in default of appearance and defence ordered that Brook Cherith refunds 120 purchasers of its land K3, 837,637.00.

The court further awarded the plaintiffs damages for breach of contract to be assessed by the deputy registrar, damages for fraud to be assessed, interest on all sums due and costs to be agreed in default taxed.

In this matter, Chanda and his company, Brook Cherith, were sued by 120 Lusaka residents for selling them plots of diverse subdivisions of number 3096 Charliesdale, off Airport road, in Lusaka which did not belong to him.
Nathan Sinkala and 119 others sought an order of injunction restraining Chanda, Brooks Cherith Estates Agents and Developers Limited from making transactions on two bank accounts, Stanbic account no. 5166704100122 held at East Park branch and account no.5166704100122 held at Zanaco, disposing of its assets or generally transacting on any bank accounts held by the defendants.

Sinkala and 119 others sought an order of damages for breach of contract and an order of damages for fraud, interests on the sum claimed plus costs for the proceedings.

In their statement of claim, the 120 complainants stated that sometime in 2018, the defendants invited members of the public by way of advertisement to purchase land under a project
christened Charliesdale situated off airport road in Chongwe district.

Sinkala and others claimed that following the invitation, they severally purchased about 130 proposed subdivisions at the consolidated sum of K3,037, 637 inclusive of service charges which had been itemized in a schedule filed into court.

The complainants claimed that they were instructed to deposit money into Stanbic account situated at East Park branch belonging to Brook Cherith and another account number held at ZANACO belonging to Chanda.

They said that it was an express term of the agreement that the plaintiffs would possess the said properties within acceptance of the offer.

Sinkala and others indicated that contrary to the agreement, the defendants failed to deliver vacant possession of the diverse proposed subdivisions to them.

They indicated that they subsequently discovered that the defendants purported offer of sale of the plot 1096 were fraudulent with the purpose of swindling members of the public.

The plaintiffs disclosed that Chanda and other defendants were not the legal owners of plot 3096 which they offered to the public as such they had no legal authority to subdivide the land and sell it.

Sinkala and others stated that the defendants have since withdrawn and misappropriated the money paid by the plaintiffs despite knowing that they (defendants) were not going to meet their contractual obligations of giving them (plaintiffs) the land.

The 120 further sought an order of damages for breach of contract and an order of damages for fraud, interests on the sum claimed plus costs for the proceedings.

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