The Commercial Court and Arbitration in Zimbabwe

The High Court (Commercial Division) is a specialised division of the High Court of Zimbabwe charged with dealing with commercial disputes in Zimbabwe. It was created to improve the ease of doing business in Zimbabwe.

With ever increasing trade and the need for specialised tribunals designed to expeditiously resolve commercial disputes according to international best practices, the Commercial Division of the High Court of Zimbabwe (‘the Commercial Court’) was established in the country and now plays an important supervisory role over commercial disputes.

More often than not the Commercial Court deals with domestic and international commercial disputes seated in Harare. It also entertains applications for relief in terms of the Model Law of arbitration proceedings conducted within Zimbabwe.

In terms of the High Court (Commercial Division) Rules, 2020 a commercial dispute is defined to mean any dispute of a civil nature considered by the court to be of commercial significance, including any claim or application arising out of a transaction of trade or commence but not limited to:

• (a) the formation of a business or commercial organisation;
• (b) the formation, management, transfer or dissolution of any business entity;
• (c) the contractual relationship of a business entity with another such entity or with another person or persons undertaken in the course of business, other than with a person or persons who are employees;
• (d) the contractual liability of a business or of a person engaged in a business that arises in the course of business activity other than arising from a contract of employment;
• (e) disputes primarily involving banking and financial services;
• (f) disputes relating to the restructuring or payment of business debts, including business rescue and insolvency;
• (g) the enforcement of an arbitral award of a business of a commercial nature;
• (h) a business dispute that is between an individual, a company, co-operative, partnership, syndicate, trust or other entity which does not arise from a contract of employment;
• (i) disputes arising from the exploitation of oil and gas reserves or other natural resources of a commercial nature;
• (j) any dispute of a commercial nature arising out of insolvency, insurance claims, competition and anti-trust law or legislation, the Companies and Other Business Entities Act [Chapter 24:31], pension funds and disputes relating to pensions or the operation of a pension fund;
• (k) any dispute relating to the management of a business or commercial organisation, including a dispute relating to the management of a business executive directors of a company and its shareholders or executive directors and the company;
• (l) any dispute relating to the contractual relationship or liability of a business, commercial organisation or person with other bodies or persons outside the business or commercial organisation arising out of business or commercial activities;
• (m) banking and financial services;
• (n) the restructuring or payment of commercial debts by or to a business or commercial organisation or person; and
• (o) any other dispute that the Judge President may designate as a “commercial dispute” upon request by any of the parties to the dispute.

It is significant to note that the very first matter to ever be heard virtually in Zimbabwe before the Commercial Court was a case involving Redan Petroleum (Pvt) Ltd t/a Puma Energy v Redan Coupon (Pvt) Ltd HH 327-22. The Commercial Court in this historic decision granted the applicant interim measures in terms of Article 9 of the Model Law.

The Commercial Court Divion of the High Court has since its establishment gone on to render numerous judgments related to arbitration, which include the following:

• (a) Savanhu v Hamunakwadi & Nyandoro Legal Practice HH 155-23 (Article 35 - Registration of award);
• (b) City of Harare v Univern Enterprises (Pvt) Ltd t/a Southern Regional Trading Co & Another HH 346-23 (Article 34 - Setting Aside of Interim Award);
• (c) Fidelity Life Assurance of Zimbabwe Ltd v CFI Holdings Ltd & Another HH 400-23 (Article 34 - Setting Aside a Final Award);
• (d) Fidelity Life Assurance of Zimbabwe Ltd v CFI Holdings Ltd & Another HH 509-23 (Article 13(3) – Judicial Review);
• (e) M. Bhika Brothers (Pvt) Ltd v Ray Makuvatsine (Private Business Corp) HH 591-23 (Article 35 - Registration of award);
• (f) Zimbabwe Manpower Development Fund v Zimbabwe Jiangsu International Company (Pvt) Ltd HH 594-23 (Article 34 & 35 - Composite application for setting aside award and registration of award);
• (g) Zimbabwe Revenue Authority v Mike Harris Toyota (Pvt) Ltd HH 614-23 (Article 34 - Setting Aside Final Award);
• (h) Clovegate Elevator Company (Pvt) Ltd v Justice N. Mtshiya (Rtd) N.O. HH 624-23 (Article 34 - Setting Aside Final Award);
• (i) Mining Engineering Consulting Services (Pty) Ltd v Blanket Mine [1983] (Pvt) Ltd & Another HH 61-24 (Article 16 – Jurisdiction of Tribunal);
• (j) Riogold (Pvt) Ltd v Falcon Gold Zimbabwe Ltd & Another HH 210-24 (Article 34 – Setting Aside Final Award);
• (k) Seedco Ltd v Falkenberg HH 462-24 (Article 16 - Jurisdiction of Tribunal);
• (l) Zimbabwe Base Metals Mining (Pvt) Ltd v Damo Resources (Pvt) Ltd & Another HH 577-24 (Article 34 – Setting Aside Final Award);
• (m) Choto v Gray Homes (Pvt) Ltd HH 147-25 (Article 8 – Stay of Proceedings); and
• (n) Harrison Holdings (Pvt) Ltd v Munakiri Tobacco (Pvt) Ltd HH 237-25 (Article 35 – Registration of an award).