Zimbabwe Football Association v Custen Pickweli and 15 Others

The respondents, employees of the applicant Zimbabwe Football Association, obtained an arbitral award for arrear and current salaries on 26 April 2017 in the amount of $195,818-72. The Labour Court confirmed the award on 8 September 2017, and the High Court registered it on 6 March 2019, making it executable. The award did not specify a currency denomination. When the Sheriff issued a writ of execution, USD was inserted before the amount, denominating it as US$195,818-72. The Sheriff attached the applicant's Nostro Account at Ecobank holding USD. The applicant had been making partial payments in RTGS dollars pursuant to a Deed of Settlement, which the respondents accepted without objection. The applicant instructed the Sheriff to pay the judgment debt in ZWL$195,818-72, contending the debt was in local currency. The dispute arose after SI 33/2019 was promulgated on 22 February 2019 (the "effective date"), which deemed assets and liabilities denominated in USD before that date to be valued in RTGS dollars at a 1:1 rate. The matter was held in abeyance pending the Supreme Court decision in Zambezi Gas Zimbabwe (Pty) Ltd v N.R Barber SC 3/20.

• Whether a judgment debt expressed in 'dollars' (without currency specification) before the effective date of 22 February 2019 is payable in United States dollars or RTGS/Zimbabwe dollars
• Whether the Sheriff's insertion of 'USD' on the writ of execution constituted an impermissible alteration of the court order
• Whether the principle of currency nominalism applies to prevent revalorization of judgment debts at execution
• The interpretation and application of section 4C(1)(d) of SI 33/2019 and the deeming provision regarding assets and liabilities
• Whether funds held in a Nostro Account affect the denomination of the underlying legal obligation
• Whether unpaid portions of a judgment debt arising after the effective date should be paid at a willing buyer-willing seller rate

1. It is declared that the applicant's tender of RTGS$195,818-72 constitutes full and final settlement of its indebtedness to the respondents. 2. The writ of execution issued in HC 1808/18 and the subsequent attachment of the applicant's foreign currency bank account are set aside. 3. The applicant is ordered to pay the respondents $195,818-72 denominated in local currency (ZWL) as determined by the labour ruling of 26 April 2017. 4. The 1st to 16th respondents are ordered to pay the applicant's costs of suit.

The binding legal principles established are: (1) A judgment debt expressed in 'dollars' without specific currency denomination before the effective date of SI 33/2019 (22 February 2019) is payable in local RTGS/Zimbabwe dollars, not United States dollars. (2) The deeming provision in section 4C(1)(d) of SI 33/2019 only converts debts that were explicitly 'denominated in United States dollars immediately before the effective date' to RTGS dollars at 1:1; it does not apply to debts expressed in generic 'dollars'. (3) The principle of currency nominalism prevents parties from revalorizing judgment debts for execution purposes, and a court cannot convert the currency of a judgment debt after it has been issued. (4) A Sheriff's insertion of currency denomination (USD) on a writ of execution, where the underlying court order did not specify such denomination, constitutes an impermissible alteration of the court order and is ineffectual. (5) The location where funds are held (such as in a Nostro Account) does not determine or alter the denomination of the underlying legal obligation. (6) The word 'deemed' in legislation establishes a legal fiction whereby something is treated as fact regardless of objective truth.

The court observed that any attempt by the respondents to apply for conversion of the currency would be 'an exercise in futility' following the Zambezi Gas decision, noting that 'that ship has already sailed'. The court commented that the direction taken by the respondents' counsel regarding unpaid balance being subject to willing buyer-willing seller rates was 'bewildering'. The court noted that it would be 'improprietous' to prefer the denominated USD sum in the writ of execution over the court order registering the local currency award. The court emphasized the 'subtle potency' and 'seemingly innocuous' nature of the word 'deemed', commending counsel for the applicant for astutely comprehending its force and meaning in the legislative context.

This case is significant in Zimbabwean jurisprudence for interpreting the currency conversion provisions of SI 33/2019 in the context of judgment debts. It clarifies that the deeming provision in section 4C(1)(d) only applies to debts that were explicitly denominated in USD before the effective date of 22 February 2019. Debts expressed in generic 'dollars' without currency specification remain in local currency. The judgment reinforces the principle of currency nominalism, preventing parties from revalorizing judgment debts at the execution stage. It also establishes that: (1) Sheriffs cannot alter court orders by inserting currency denominations; (2) The location of funds (such as Nostro accounts) does not change the nature of the underlying legal obligation; and (3) The word 'deemed' in legislation creates a legal fiction that operates regardless of objective truth. The case provides crucial guidance on monetary obligations during Zimbabwe's transition from multi-currency to local currency regime.