High Court lets Savvas Investments pursue eviction of OK Zimbabwe from Mount Pleasant premises
Written on
Zimbabwe's High Court has granted Savvas Investments leave to sue OK Zimbabwe over a disputed commercial lease, allowing the property company to pursue eviction of the retailer from its Mount Pleasant premises despite its ongoing corporate rescue.
The High Court has granted Savvas Investments leave to sue OK Zimbabwe, allowing the property company to continue with its eviction case against the financially distressed retailer despite its ongoing corporate rescue.
Justice Lucy Mungwari specifically permitted Savvas to proceed with case HCHC 110/26, which was filed before OK Zimbabwe entered voluntary corporate rescue. In practical terms, the ruling means Savvas can now pursue its pending court action seeking confirmation of cancellation of OK Zimbabwe's lease, evict the retailer from its Mount Pleasant premises and recover holding-over damages and other amounts claimed. The judge did not rule on whether the lease was validly cancelled or whether OK Zimbabwe must ultimately be evicted, as those issues will be determined in the main case.
The dispute concerns commercial premises at 48 Bond Street, Mount Pleasant, Harare, which Savvas says OK Zimbabwe has continued occupying despite cancellation of the lease. The lease agreement was entered into on 19 December 2024, and Savvas alleged that OK Zimbabwe repeatedly breached it by failing to pay rent, municipal rates and electricity charges on time, failing to convene agreed management meetings and neglecting necessary repairs. Savvas cancelled the lease on 12 December 2025 and, on 17 February 2026, issued summons seeking confirmation of the cancellation, eviction, holding-over damages and payment of municipal rates.
OK Zimbabwe entered voluntary corporate rescue on 24 February 2026, which triggered the statutory moratorium under Section 126 of the Insolvency Act and meant Savvas could not continue its court action without obtaining leave from the High Court. OK Zimbabwe opposed the application, arguing that allowing Savvas to proceed would undermine the rescue process and prejudice its approximately 3,000 creditors, employees and other stakeholders. It disputed the allegations of persistent default and challenged the legality of the lease cancellation.
Justice Mungwari ruled that the statutory protection enjoyed by a company under corporate rescue is not an absolute bar to litigation, stating that "corporate rescue cannot be converted into a substantive extension of a contested lease." OK Zimbabwe had initially told the court it expected to emerge from corporate rescue by 31 July 2026, but that date passed without the company exiting rescue, and when the matter was heard its lawyer could not give the court a new exit date.