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Judgment No. SC 34/18|5
Civil Appeal No. SC 165/16
Marange Resources (Pvt) Ltd directly participated in despoiling Mbada Diamonds. It merely
proves Marange’s willingness to join the merger before receiving further information while
Grandwell needed further information before it could decide on whether or not Mbada
Diamonds should join the merger.
It was on these facts that the first respondent sought an interim order declaring
that the conduct of the appellants in removing Mbada Diamonds’ representatives from its
mining site and effectively assuming control of Mbada Diamond’s mine constitutes an act of
spoliation. The first respondent also sought an order directing the appellants to vacate Mbada
Diamond’s mining site with immediate effect and interdicting the appellants from interfering
with Mbada Diamonds’ operations. Mbada Diamonds through an affidavit signed by its Chief
Executive Officer Luciyano supported the first respondent’s application.
The application was opposed by the appellants who raised several preliminary
points including that the first respondent as a shareholder of Mbada Diamonds had no locus
standi to institute an action on behalf of the company. The appellants argued that Mbada
Diamonds should have made the application to enforce its rights. The first respondent argued
that it was entitled to institute proceedings on behalf of the company through a derivative
action. The appellants argued that derivative action was not available to the first respondent.
The court a quo dismissed the preliminary point raised by the appellants and held
that derivative action was available to the first respondent. The court a quo held that it would