GMD Food Catering (Private) Limited v Desmond Morris and The Deputy Sheriff for Zimbabwe

An arbitration award was made in favor of Desmond Morris (first respondent) against GMD Food Catering (Pvt) Ltd for US$52,580.00. The award was registered as an order of court and a writ of execution was issued on 2 August 2006 (also referenced as 31 July 2006). The first respondent, in a letter dated 14 November 2005, indicated willingness to accept the Zimbabwe dollar equivalent of the judgment debt calculated at the prevailing market rate within seven days. On 9 December 2008, the applicant (Brightland Farming Pvt Ltd) tendered a cheque for Z$7,426,399,200.00, which was rejected by the first respondent. On 30 April 2009, property was seized and attached pursuant to the writ of execution. The applicant had previously instituted interpleader proceedings claiming the attached property was its own, but this claim was disallowed by the Supreme Court. The applicant then sought an order interdicting and prohibiting the respondents from proceeding with the sale in execution of the attached assets.

• Whether the applicant (Brightland Farming Pvt Ltd) had locus standi to bring the application when it was not a party to the original arbitration proceedings or the registered award
• Whether the first respondent was entitled to reject the Zimbabwe dollar payment tendered by the applicant in December 2008
• Whether execution on a writ sounding in foreign currency (US dollars) was competent in the prevailing multiple currency regime
• Whether the first respondent was entitled to execute on a writ issued in 2006 for payment in US dollars under the changed currency regime

The chamber application was dismissed with costs.

A judgment creditor who holds a judgment sounding in foreign currency (US dollars) is entitled to execute that writ under a multiple currency regime that recognizes the US dollar as legal tender, notwithstanding that the judgment was obtained at a point in time when the creditor could not lawfully execute in foreign currency. The creditor is entitled to hold on to the writ until such time as he or she deems it appropriate to execute, and the changed currency regime permits lawful execution in the currency specified in the original judgment.

The first respondent raised a point in limine regarding the applicant's locus standi, arguing that since the writ of execution was issued in respect of proceedings between himself and GMD Food Catering (Pvt) Ltd, and Brightland Farming (Pvt) Ltd was not a party to those proceedings, only GMD Food Catering (Pvt) Ltd would have locus standi to bring an application to set aside the writ. While the court noted this argument in reciting the respondent's affidavit, it did not expressly rule on this preliminary point, instead proceeding to dismiss the application on the merits. The court also noted without detailed analysis that the Supreme Court had previously disallowed the applicant's interpleader claim regarding ownership of the attached property.

This case is significant in Zimbabwean law for establishing that judgment creditors holding foreign currency judgments (specifically US dollar judgments) obtained before the multiple currency regime could lawfully execute those writs once the multiple currency regime came into effect and recognized the US dollar as legal tender. The case demonstrates the intersection between historical judgments and changed economic/currency regimes, affirming that creditors are not prejudiced by delays in execution when the legal tender regime subsequently permits enforcement in the original currency of the judgment. It also reinforces principles regarding locus standi in execution proceedings and the enforceability of arbitration awards registered as court orders.