Wilson Tendai Nyabonda v Ariston Holdings Limited and Leon Nortier

On 24 August 2016, the applicant obtained a default judgment against Leon Nortier (the Judgment Debtor) and African Farmer Private Limited for payment of US$123,000.00, inclusive of 10% collection commission and costs. A writ of execution was obtained on 15 September 2016. The Judgment Debtor allegedly left Zimbabwe to evade payment. The applicant partially satisfied the debt by recovering a planter and successfully attaching a debt owed by SeedCo Zimbabwe (Private) Limited. As of July 2017, the outstanding amount was US$28,000.00 plus collection commission and costs. In March 2024, the Judgment Debtor was appointed Chief Executive Officer of Ariston Holdings Limited (the Garnishee). The applicant sought a garnishee order to attach the Judgment Debtor's salary and benefits payable by the Garnishee to recover the outstanding US$28,000.00. The Judgment Debtor disputed the enforceability of the judgment in US dollars following changes in currency law through SI 33 of 2019 and SI 142 of 2019.

• Whether Statutory Instruments SI 33 of 2019 and SI 142 of 2019 affect the enforceability of debts incurred prior to these regulations, particularly those denominated in United States dollars
• Whether a judgment debt obtained in US dollars before 2019 can be enforced in US dollars after the currency regime changes
• Whether a garnishee order can be granted for a debt in US dollars under the current legal framework

The application for debt attachment was dismissed. Each party was ordered to bear its own costs.

The binding legal principle established is that judgment debts denominated in United States dollars obtained before the enactment of SI 33 of 2019 and SI 142 of 2019 cannot be enforced in US dollars following the establishment of the RTGS dollar and ZWL as sole legal tender. All such debts must be converted to RTGS dollars at a one-to-one rate as mandated by the statutory instruments. A garnishee order cannot be granted for a debt in US dollars without providing an alternative in the currency currently in use as legal tender. The mode of enforcement of judgment debts must align with current currency regulations as established by statutory instruments, even though the underlying judgment remains valid.

The court observed that the Judgment Debtor's claims regarding lack of awareness of court proceedings and non-service of summons do not invalidate a judgment granted in default. The court noted that the Judgment Debtor had allegedly left Zimbabwe to evade payment, and that partial satisfaction of the debt had been achieved through recovery of assets and attachment of debts from third parties. The court acknowledged that the Judgment Debtor had requested a detailed account of the outstanding amount to facilitate payment but claimed to have encountered resistance, though this did not affect the court's analysis of the currency issue.

This case is significant in Zimbabwean law as it reinforces the application of currency conversion regulations to pre-existing judgment debts. It confirms that judgment debts obtained in US dollars before the 2019 currency regime changes cannot be enforced in US dollars without conversion to the current legal tender. The case demonstrates the retrospective effect of SI 33 of 2019 and SI 142 of 2019 on all obligations, including judgment debts, and the mandatory requirement for creditors to seek enforcement in the currency currently recognized as legal tender. It provides guidance on garnishee order applications in the context of Zimbabwe's changing currency framework and emphasizes that while judgments remain valid, their enforcement must comply with current statutory currency provisions.