Shah loses Interfin court case

THE Deposit Protection Corporation (DPC) has won a Supreme Court appeal over Al Shams Global BVI Limited (Al Shams)’s plans to compel the state agency to “honour its liquidity support agreements” with Interfin Banking Corporation Limited (Interfin) and which would have given it an advantage over liquidation proceedings.
This followed a 2016 High Court ruling that John Chikura’s company should restate its commitment to the British Virgin Islands (BVI)-based creditor’s 2012 agreements, but Justice Rita Makarau has said effectively said Jayesh Shah’s outfit cannot have a monopoly over the February 2015 insolvency proceedings as the law’s intention was to equitably redistribute proceeds from debtor companies.
“It is, therefore, my finding that the court a quo erred in construing the cause that was before it. The application a quo was not against the appellants in their personal capacities. It was against the bank in liquidation. It sought to compel the second appellant to perform under the two agreements that the respondent (Al Shams) had with the bank as if it was the bank,” she said before noting there was no “leave of court sought before the agreements were hammered and institution of proceedings”.
“…the position is settled at law that an order placing an estate or a company in liquidation has the effect of creating a concursus of the creditors of the insolvent and no creditor can, thereafter, do anything that will alter the rights and interest of other creditors without the leave of the court,” Makarau said, sdding there was no indication whatsoever about the money given to In