TM loses Avondale branch premises

Published: 24 June 2014

Retailer, TM Supermarket lost its bid to retain the Avondale branch premises, which it operated from for more than four decades after the Supreme Court threw out its appeal in a dispute with the landlord. Before the eviction, TM had operated from the premises for 46 years since 1968.

It wanted to remain at the premises as a statutory tenant pending an appeal against a High Court decision rejecting its application for rescission judgment obtained against it by the landlord, Avondale Holdings (Pvt) Ltd.

Chief Justice Godfrey Chidyausiku sitting in his chambers last week dismissed the urgent appeal for stay of execution of the eviction for lack of merit.

TM was ordered to pay the costs of suit.

Advocate Eric Matinenga, who represented TM had urged the judge to allow the appeal.

He said TM should be entitled to re-instatement pending the hearing of the appeal against the refusal by Justice Felistus Chatukuta to rescind a default judgment that was issued against it in the lower court.

He said his client was suffering serious loss of business. Avondale Holdings lawyer Adv Firoz Girach argued that the relief claimed was incompetent and in any event the court did not have jurisdiction to hear the matter.

In this case, Adv Girach said the balance of convenience did not favour TM because they had already been evicted and renovations on the premises had commenced.

TM was a tenant of Avondale Holdings for over six decades having entered into various lease agreements to remain in occupation of the property.

The original lease agreement was entered into June 14 1968 between Avondale Holdings and Greatermans Stores. Avondale Holdings became substantive lessee with effect from 1978 in terms of a notarial deed of assignment of lease.

The lease was renewed on various occasions. The most recent extension of the lease agreement was agreed in 2009 and terminated on February 28 this year. After the termination of the lease agreement TM remained in the premises as a statutory tenant.
- The Herald