Harare: Zimbabwe Consolidated Diamond Company (ZCDC)’s future hangs in the balance after the Supreme Court last week dismissed Government’s appeal challenging a High Court decision to allow Mauritius-registered firm Grandwell Holdings to remain at Chiadzwa, according to a report published in The Herald.

Grandwell Holdings holds a 50 percent controlling stake in Mbada Diamonds (Pvt) Limited.

Then Mines and Mining Development Minister Walter Chidhakwa, Zimbabwe Mining Development Corporation (ZMDC), Marange Resources (Pvt) Ltd and ZCDC had appealed against the High Court decision.

The three Judges of Appeal – Justices Tendai Uchena, Antonia Guvava and Bharat Patel – unanimously concurred to uphold the lower court ruling in three separate judgments.

The judges unanimously agreed that ZCDC occupation of Mbada claims was unlawful and Mr. Chidhakwa acted unlawfully and violently when he evicted Mbada Diamonds from its concession area in the diamond fields.

It was also unanimously ruled that Grandwell (Pvt) Ltd was entitled to institute a derivative action to protect the rights of Mbada Diamonds (Pvt) Ltd at its Marange concession.

Derivative action is a lawsuit brought by a shareholder of a corporation on its behalf to enforce or defend a legal right or claim, which the corporation has failed to do.

The ruling is very significant in that it makes the various orders which had been made pending appeal, final.

Those orders, provided among others, that the pending appeal the ZCDC and the police as well as those acting on their behalf be interdicted from collecting, from Mbada Diamonds’ concession area, diamond ore mined by Mbada Diamonds (Pvt) Ltd.

They also bar Zimbabwe Consolidated Diamond Company (Pvt) Ltd from accessing areas secured by Mbada’s security personnel or otherwise interfering in any manner with security arrangements made by Mbada Diamonds (Pvt) Ltd in respect of its concession area.