Supreme Court Rules That USD Debts Can Be Repaid In RTGS At 1:1 In Landmark Ruling
The Supreme Court has ruled that debts that were incurred in United States Dollars before 22 February 2019 can be discharged in RTGS at the rate of 1:1.
The ruling was made by Chief Justice Luke Malaba together with Justice Susan Mavingira and Justice Nicholas Mathonsi.
The Supreme Court released the ruling yesterday in the case of Zambezi Gas Zimbabwe (Private) Limited V N.R Barber (Private) Limited and The Sheriff for Zimbabwe.
An excerpt of the ruling from the Supreme Court Reads,
MALABA CJ: This is an appeal against the decision of the High Court (“the court a quo”) dismissing an urgent chamber application for an order declaring that the payment made to the first respondent in terms of a court order was a full and final settlement of the liability owed by the appellant.
The appeal succeeds. The Court holds that the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act & Issue of Real-Time Gross Settlement Electronic Dollars (RTGS Dollars)) (“S.I. 33/19”) expressly provides that assets and liabilities, including judgment debts, denominated in United States dollars immediately before the effective date of 22 February 2019 shall on or after the aforementioned date be valued in RTGS dollars on a one-to-one rate.
The order in terms of which the appellant was obliged to pay the judgment debt owed to the first respondent, denominated in United Stated dollars, was made before the effective date. The judgment debt and its evaluation fell within the ambit of the provisions of…of S.1. 33/19. The payment made by the appellant in fulfilment of the judgment debt and final settlement of the liability owed by the appellant. The reasons for the decision now follow.
