Retail giant OK Zimbabwe is facing possible eviction from its Mount Pleasant branch after the High Court lifted the corporate rescue moratorium that had been shielding it from legal action by its landlord.

High Court Judge Justice Lucy Mungwari granted Savvas Investments leave to proceed with its pending case against OK Zimbabwe over a commercial property at 48 Bond Street in Mount Pleasant.

Savvas Investments alleges that OK Zimbabwe breached its lease agreement by failing to pay rentals and other related charges, leading to the cancellation of the lease in December last year.

Following its financial challenges, OK Zimbabwe entered voluntary corporate rescue in February this year, a move that automatically triggered a moratorium suspending all legal proceedings against it.

In her ruling, Justice Mungwari held that corporate rescue proceedings cannot be used as a means to extend a lease agreement that is already in dispute.

The Judge noted that while Savvas has been allowed to proceed with its legal action, the court has not yet ordered the eviction of OK Zimbabwe from the premises.

The matter will now proceed before the courts for determination on the merits.