Village Inn Hotel Undergoes Facelift

STAFF WRITER

The Village Inn Hotel, nestled in the picturesque tourism town of Nyanga, Manicaland, is undergoing a significant multi-million dollar upgrade project.

This follows the conclusion of a protracted legal battle between the former proprietors and the new owners.

The dispute centred on allegations that Tatipano Properties, a private company owned by Nyanga South legislator Supa Mandiwanzira, had irregularly acquired the hotel from a judicial manager. Edward and Fanuel Buwu, the previous owners, contested the sale in the High Court, arguing that the judicial manager lacked the authority to proceed without shareholder consent.

The High Court initially dismissed the Buwus’ claims, but they appealed to the Supreme Court. The Supreme Court judgement, delivered by a panel led by Deputy Chief Justice Gwaunza and Justice Mathonsi, dismissed the appeal. The court found that the Buwus lacked legal standing (“locus standi”) to contest the sale agreements, as they had failed to demonstrate a legitimate interest in the matter.

The Supreme Court judgement also criticised the Buwus for basing their case on “false assertions” regarding the scheme of arrangement under which the hotel was sold. The court emphasised that the scheme manager, appointed to oversee the insolvency process, had the legal authority to dispose of assets, including the Village Inn Hotel.

“The court a quo dismissed the appellants’ claims in HC 7760/18 and HC 7843/18, which had been consolidated, upon finding that the appellants had no locus standi in judicio to seek the cancellation of two agreements of sale,” the ruling stated.

The Supreme Court rebuked the Buwus for advancing false assertions regarding the registration status of the scheme, emphasizing the lack of merit and validity in such claims.

“It was clear that the appellants sought to base their cause of action on their own false assertion that the scheme was not registered and it needed their consent to be implemented,” the ruling remarked.

“The appellants cannot seek to clothe themselves with locus standi premised on their own creation of non-existent facts,” the ruling continued. “The agreements of sale were between the first respondent companies as represented by the scheme manager and the third respondents. The appellants are thus strangers to the agreements of sale.”

In essence, the ruling reaffirmed that the shareholders had no standing to interfere with the disposal of assets in accordance with the sanctioned scheme, and their attempts to nullify the sale agreements lacked legal basis.

“The appellants [Buwus] seemed unwilling to accept that the scheme took away some of the rights of the company and even their own rights in favour of the terms and conditions of the scheme,” the judgement stated.

With the legal dispute resolved, the new owners have now embarked on a substantial expansion and refurbishment project. The aim is to transform the hotel into a world-class establishment, meeting the standards of top hotels globally.