Wednesday, October 30, 2024

Lewis Mosho’s Bid Against Sun Pharmaceuticals Dismissed

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Lewis Mosho’s Bid Against Sun Pharmaceuticals Dismissed,

For the avoidance of doubt, having ruled that this matter is indeed statute-barred, the Ex Parte Order granted by the Court on 16th April 2024 appointing the Administrator General of the Republic of Zambia as the Official Receiver as Interim Business Rescue Administrator is at this moment discharged and this matter is therefore dismissed for being statute barred”…

The Livingstone High Court dismissed an application in which a purported worker of Sun Pharmaceuticals Limited sought to wind up the company’s business.

This is a similar route that Lewis Nathan Advocates took in winding up Affairs of The Post Newspapers.

In this case, the Supreme Court has granted compensation to shareholders of Sun Pharmaceuticals worth millions of dollars following overpayment made in the loan repayments to the Development Bank of Zambia (DBZ).

It is these funds that have brought intense interest in the company and Lewis Nathan Advocates have brought various actions representing the estate of the late Hon. Kalenga and other parties.

In the Livingstone matter, Lewis Nathan Advocates on behalf of the Kalengas, applied to place Sun Pharmaceuticals under business rescue purporting that a worker, Mr. John Masheta, was owed past salaries and benefits.

In her ruling discharging the Exparte Order granted in April 2024, Hon. Lady Justice Mbile Wina ruled that in the instant case, other than Mr. Musheta stating that he was owed salary arrears from over 30 years ago, he had not provided any evidence to show the court that there was in effect a plan to implement the rescue of the Respondent Company.

She ruled that equally, the 2nd Affected person, Jacob Funyina, had simply re-echoed what the applicant has stated as being the administrator of his late father’s estate, who was an alleged former employee of the Respondent Company and was owed arrears for the period 1992 to 1993.

Justice Wina ruled that the period of 30 years ago means that the 2nd Affected person’s claim was also stale and therefore statute barred.

She stated that the first affected person (Uddit Sadhu) has alluded to the abuse of the Court
process by the Lewis Nathan Advocates, namely that there was an identical winding-up petition filed at Ndola High Court under Cause No. 2024/HN/93 and that before that winding up petition, the principal parties, namely the Kalenga brothers had previously filed before this court in Ndola but later discontinued and restarted a fresh process in Livingstone.

“Having already stated that this matter is in fact statute-barred, the issue of it being an abuse of the Court process has
become otiose.”

“For the avoidance of doubt, having ruled that this matter is indeed statute-barred, the Ex Parte Order granted by the Court on 16th April 2024 appointing the Administrator General of the Republic of Zambia the Official Receiver as Interim Business Rescue Administrator is hereby discharged and this matter is therefore dismissed for being statute barred.”

This action was commenced by John Musheta who claims to have been an employee of
Sun Pharmaceuticals Limited and that he is owed salary dues and terminal benefits for the period between January 1991 and December 1992

But Uddit Saddu, who is a manager and shareholder in the company responded that Sun Pharmaceuticals Limited has never been served with any demand for payment of salary
dues or indeed terminal benefits due to the Applicant and that he only became aware of this claim for the first through this action.

He said neither he nor Sun Pharmaceuticals Limited have ever been served with the Originating process issued in this action or any other documents taken out in these proceedings for commencement of business rescue and the appointment of a Provisional Liquidator for Sun Pharmaceuticals Limited

He therefore insisted that Sun Pharmaceuticals Limited does not owe Mr. John Musheta, any salary dues or terminal
benefits for the period between January 1991 to December 1992 or any other period during which the claim, even assuming it was valid is a stale claim by Zambian law.

He said Mr. Musheta had never produced any Contract of Employment to show that he was an employee of Sun Pharmaceuticals or any document that shows that he was entitled to a salary of USD 3,000.00 per month from Sun Pharmaceuticals Limited.

He said Mr Musheta had exhibited a purported letter as an instruction from Mankolo Nayani, the alleged Joint Liquidator of Union Bank Zambia Limited directed to J & M Advocates to pursue Sun Pharmaceuticals for a purported debt.

It must be stated that Union Bank Zambia Limited is not privy to this action and
therefore the letter referred to saved no purpose.

He said that if Union Bank indeed had a genuine claim against Sun Pharmaceuticals, it was up to Union Bank to pursue such a claim directly with Sun Pharmaceuticals Limited and not via a proxy.

He stated that it was clear that the Applicant therefore had no locus standing to bring the action against Sun Pharmaceuticals
Limited, based on a purported stale claim or indeed based on an alleged claim by Union Bank Zambia Limited.

Lewis Nathan Advocates had taken a similar application in winding up The Post Newspapers and used a similar modus operandi.

According to Mr Sadhu’s affidavit, the litigation was intended to achieve similar aims as proceedings commenced ex parte in the Ndola High Court by Zambia by Lewis Mosho on behalf of Zambia Modern Enterprises, John and Mususu Kalenga under cause 2024/HN/93, where an Ex Parte Order to appoint a provisional liquidator, Mr Tresphfod Kabanga, was granted by Judge Lameck Mwale on 28 February 2024 – whose appointment has since been stayed.

The same Tresphfod Kabanga was intended to be appointed as Business Rescue Administrator in the Livingstone matter.

In the case of The Post, they used a worker Abel Mbozi, obtained an exporter order, and proceeded to liquidate The Post.

The matter has been discussed extensively in The Supreme Court Ruling rendered on the 17th of February, 2022.

Its decision in the case of Fred Mmembe and Post Newspapers Limited v Abel Mbozi and Others Appeal No 7 of 2021. This was a matter where a shareholder and director of a company in liquidation appealed against a decision of the lower courts. Lewis Mosho was accused of illegally winding up the affairs of the company using export orders.

This case has attracted interest following the University of Zambia Law Lecturer, Dr. Obrien Kaaba who exposed the abuse of State Chambers for purposes of purveying corruption.

In the case of Sun Pharmaceuticals Ltd, the intention is to misuse State Chambers by obtaining an ex parte court order to change the company’s status and divert compensation fund payments due from the Judgement Debt to a group involving Lewis Mosho and others.

26 COMMENTS

  1. Lewis Mosho has been linked to numerous fraudulent legal cases. Winding up companies, obtaining default judgement and other legally dubious actions which bring shame to the legal fraternity of Zambia. The pertinent question is why has Law Association of Zambia not revoked his license?

    There is King Farms, ECL Mall, ShopRite, Post Newspapers, there is the case of alleged forgery of Hon Lazarous Chota By Lewis Mosh in Court Documents.

    How much further will LAZ and the Judiciary allow his shenanigans to damage the entire legal fraternity’s standing?!

    25
    • The legal fraternity, that is, practising lawyers, retired lawyers, judges, retired judges, law lecturers and retired law lecturers, the public is waiting for you to rise to the challenge. Will you?

      15
  2. Serious questions for Zambian Judiciary to answer here! How did a former employee of 30 years get an ex parte order to appoint an administrator over a company due millions of dollars in court payments? Is this the sort of corruption Dr Kaaba was referring to in his disclosures to the public? Even if the court has reversed itself, it’s shocking to believe such grave ex parte orders would be passed in the first place by the High Court. The Chief Justice must order all his Judges to only issue inter parte orders in serious matters or he would be allowing a repeat of this dirty tactic by the likes of Mosho again in future.

    15
    • Chief Justice Mumba Malila is fighting a deeply ingrained culture of corruption in some quarters of the bar and bench. With state chambers now going into overdrive to steal judgment money CJ’s only allies are the upright judges not susceptible to corruption. Attorney general chambers is part of the rot under UPND.

  3. Lawyers are thieves…. in black robes, white shirts and British wigs. They conive with judges, prosecutors and sate chambers to syphon huge amounts of money.

  4. The legal fraternity comes only second to politicians in those that have messed up this country. Now everyone, engineers, bankers accountants etc have joined the bandwagon. A lawyer went to wake up a judge at 3am and obtain a consent judgement to which other affected parties did not consent to. Nevver heard of this except in Zambia. Anyway I not a lawyer so it’s pointless to try to understand

  5. High court issues an order without the involvement of the affected party! State chambers connives to divert compensation payments away from the company to an alleged 30 year worker! This eerily sounds like one of the urgent concerns acc whistleblower Dr Obrin Kaaba raised in public for President Hichlema to address. Guessing the theft became too hot for mosho, kalengas and state chambers after Kaaba’s concerns went public!!

    10
  6. Ma Ma Mia… I smell a rat… some politician must be involved with Mosho… just as he was used under PF to close Post…Mosh is the rat that goes into the sewer for big boys who need to stay in the background…kalengas are only known for the debts around lusaka.. so… who is the real paymaster of mosho here ?

  7. Lewis Mosho cannot launch these repeated attempts to take over companies without judiciary insiders conniving to undermine the law of the land. Report does not state who were the lawyers on the other side who beat him so badly.

  8. Irrelevant. ZESCO loadsheding which was supposed to be restored at 11hrs today in PHI Lusaka, has not been restored according to schedule and it is going to 21hrs now, 10hrs delay on scheduled time

  9. What if HH is using lewis Mosho and Kalengas to take over the compensation monies? Just Like Lungu used the same Mosho to liquidate Post Newspapers. The longer UPnD stays in power the more we see they are trying to repeat everything PF did but on a bigger scale. Upnd were not sincere in elections but are just jealous of pf .

    2
    3
    • Its disappointing state chambers under President HH could be involved but ultimately the matter seems to have been seized, leading to the Ruling from Livingstone stopping his gang. That suggests HH was not involved but people inside his AG Chambers are part of Mosho gang.

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  10. The same Lewis Mosho was also involved in the ex parte takeover of the Isrealii Lev Leviev’e stake in mining company Gemcanton – all in corroboration with PACRA. In that case also, the owners of the shares in the mine were not part of the case or indeed served with any documents but the judge still signed the suspicious consent order forfeiting the shares. Mosho is an expert in fake liquidation and theft of shares and currently was so trial in court for theft of Shoprite Supermarkets shares, which he used to mange as a broker. This is the Zambian Mafia.

  11. If not for this one judge, the owners would have lost their company, and by the time the Supreme Court reversed it, the company would have been stripped clean. These are sophisticated groups impeded inside the judiciary, and they have already done it before to other companies many times. Sheer Lawlessness.

  12. Talk about an abuse of judial ex parte orders, Compensation fund corruption cream . Sweet stuff! No comment from ACC? Where are they on this? Oh sorry, there is no board or Director General .. :))

  13. Dr. Obrian Kaaba did not overstate the crisis in Attorney General Chambers. White-collar crime in Zambia has grown exponentially. The AG, SG, and PSs should be changed immediately.

  14. If i understood this matter right the liquidiator apointed ex parte was also to be apointed the buisness rescue administraor, of the same company, eating the compensation money using ndola and livingstone courts, at the same time ? only in zambia can we see these jokers in wigs getting away with it.

  15. Kudos to the Livingstone Court for shutting down Lewis Mosho! This lawyer has a controversial history, and I know several people who would be relieved to hear that he flopped. The Drug Enforcement Commission wanted him in jail for theft of Shoprite shares, but he managed to evade prison and has continued using the same abusive tactics in the courts. He even managed to start contempt proceedings against the DEC commissioner without serving the process. The law must catch up with him someday.

  16. Zambia’s police and courts are highly corrupt. There are good judges here and there but where Lewis Mosho is involved we can be sure he has tried every underhanded method possible. He has found his partners in UPND just as he had in PF.

    • Chief Justice Malila is known for his integrity. Zambia’s courts have produced many good judgements over the years. Where courts often fail is when standing up to political pressure and intimidation. Mosho is just a symptom / useful corrupt tool in a system where our own politicians create the cartels to steal hard earned money of others. PF/UPND are just the same here, though maybe UPND is worse.

  17. The Kalengas were in the UK just the other week for a graduation ceremony….boasting they have cabinet ministers in their pockets and can facilitate any deal for the right price!! They like to talk of their insider connections in the courts and ministries. Its a business model for that family. Lusaka is filled with such dirty filth and fake buisnessmen

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