QV contests judicial management order

QV contests judicial management order
Published: 14 March 2014
QV Pharmacies has appealed to the High Court to overturn an order placing it under provisional judicial management arguing the order was "clandestinely" obtained.  

Mr Winsley Militala of Petwin Executor and Trust Company was appointed the provisional judicial manager of QV Pharmacies in January after Pulse Medical Care, one of its creditors applied for the court ruled reconstruction for the once viable drug retailer.

QV Pharmacies is a subsidiary of CAPS Holdings, controlled by businessman Mr Fred Mutanda. In court papers challenging the order, Mr Mutanda, who is also the QV chairman argued he was not served with papers prior to the placement of the company under provisional judicial management.

He also said the granting of the order was based on unsubstantiated claims that he misappropriated QV funds. Mr Mutanda said he became aware of the existence of the order on January 14. He then engaged the provisional judicial manager and his lawyer to establish the basis of the order, but the two never came back to him as they had promised.

"I believe that the provisional order was obtained clandestinely," said Mr Mutanda. "I have a right to be heard, as the court cannot make a decision based on unsubstantiated allegations against me without taking into account representations made by myself.

"The rules of natural justice demand that a party or litigant must be given an opportunity to be heard on merit and the courts have taken cognisance of the need to dispose on matters on merit rather than on technicality."

Mr Mutanda said QV Pharmacies was not in default of the proceedings to place it under judicial management.

"The application of placing QV Pharmacies under judicial management was a conspiracy between the alleged creditors and hostile employees," said Mr Mutanda.

In its affidavit, Pulse Medical Care claimed QV Pharmacies was unable to pay its debts due to lack of corporate governance structures and shareholders constantly interfering in the business' finances.

It said while QV operated a lucrative business of trading in medicinal drugs its liabilities were exceeding its assets.

"It is the applicant's (Pulse) prayer that the respondent be placed under provisional judicial management to prevent further mismanagement and shareholder meddling so that respondent can trade out its current difficulties and become a successful concern."
- The Herald
Tags: QV, Pharmacy,


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