High Court Commercial Division

The Commercial Court was officially inaugurated on 15th September, 1999. The Government of Tanzania endorsed the recommendations in 1997. It is a division of the High Court of Tanzania. The difference with other High Court Registries is that this court specializes in the determination of commercial disputes only.

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235 judgments
Citation
Judgment date
December 2015
Invoice-discounting does not bar the applicant's ordinary recovery absent a bona fide dispute.
Commercial law – invoice discounting facility – scope of bank’s recovery rights; Civil procedure – summary recovery (Order XXXV) – bona fide dispute requirement; Contract – alleged misrepresentation/coercion in issuance of post-dated cheques; Personal guarantee – enforceability and bank’s recourse.
23 December 2015
Court declared a valid sale and transfer of ten shares; damages unproven; costs and interest awarded to plaintiff.
Company law – transfer of shares; admissibility and weight of minutes, transfer form and handwriting expert report; pre-emptive rights in articles as control not absolute bar; bona fide purchaser; damages require proof of loss; costs and interest awarded.
15 December 2015
Uncontested affidavit supported grant of six‑month interlocutory injunction restraining dealings with company assets and mining licences.
Commercial injunctions; uncontested ex parte affidavits may be relied upon unless palpably false; interlocutory injunction test — Atilio v Mbowe (serious question, irreparable harm, balance of convenience); Cogecot/TANESCO principle (fruits of judgment) not applicable where no decree possession; temporary restraint on dealing with shares, assets and specified mining licences granted for six months.
14 December 2015
Court granted a six‑month interlocutory injunction restraining respondents from dealing with the 6th respondent's assets, shares and mining licences.
Commercial injunctions; ex parte interlocutory relief on uncontested affidavit; AtiUo v Mbowe criteria (serious question, irreparable injury, balance of convenience); Cogecot Cotton/TANESCO ‘fruits of judgment’ principle considered; restraint on dealings with shares, assets and mining licences pending trial.
14 December 2015
Extension of time denied where applicant failed to show sufficient, substantiated reasons for procedural delay.
Commercial Procedure – extension of time – requirements for showing sufficient cause; Civil Procedure Code Order VII r.13 and Order VIII r.1(1) – time limits for replies and defences to counter-claims; discretion to extend time – need for material justification; inaction/negligence of party or counsel not excused.
14 December 2015
Court found a term loan agreement and executed securities (debenture and guarantees); further findings on breach not provided.
* Commercial law  Term loan  Existence and enforceability of facility agreements, debentures and personal guarantees * Evidence  Reliance on documentary exhibits (loan application, board resolution, loan agreement, debenture, guarantees) where defence does not effectively deny execution * Defence plea  Allegation of non-disbursement due to managing directors death and its effect on liability
11 December 2015
Overdraft claim struck out for lack of proper demand; business loan recovery awarded with contractual and decretal interest.
Banking law – overdraft payable on demand requires a proper demand notice; business loan repayable by instalments may be enforced on default without prior notice; joinder of claims proper where loans arise from same transaction; frustration defense requires evidence and that the unforeseeable event be fundamental to the contract.
10 December 2015
Withdrawal of an unargued application does not justify denying respondents their usual costs; costs follow the event.
Civil procedure – withdrawal of application – costs – general rule that costs follow the event – failure to argue application not a sufficient reason to depart – respondents entitled to costs for counter‑affidavits and attending court.
8 December 2015
Suit struck out: High Court lacked jurisdiction under section 13 CPC; pecuniary jurisdiction depends on substantive claim.
Civil Procedure – Jurisdiction – Section 13 CPC mandates suit be instituted in the lowest grade competent court; High Court jurisdiction subject to other written laws; pecuniary jurisdiction determined by substantive claim not quantified general damages. Limitation – accrual of cause of action is a factual issue unsuitable for resolution as a preliminary objection. Pleadings – plaintiff may not be allowed to amend to cure jurisdictional defect after preliminary objection where that would pre-empt the objection.
7 December 2015
A registrar must file a presented arbitral award; courts cannot entertain limitation objections before registration.
* Arbitration law – filing and registration of arbitral awards – meaning of 'cause the award to be filed' – arbitrator may authorise another person to file award. * Registrar’s duty – mandatory filing/registration on presentation – no power to refuse, delay or adjudicate objections before filing. * Jurisdiction – High Court acquires jurisdiction over an award only after filing/registration; preliminary objections (e.g., time-bar) premature.
4 December 2015
The applicant proved respondents’ surety liability for unpaid staff group loans; judgment awarded with interest and costs.
Banking law – group personal loans – employer as surety/suretyship – guarantor liability; evidence and burden of proof; creditor’s right to collect from borrowers; account reconciliation and alleged unauthorized debits; award of interest and costs.
4 December 2015
A sentence imposed without a formal conviction is a fatal irregularity, voiding trial and appellate proceedings and requiring a proper judgment.
Criminal procedure — requirement that conviction precedes sentence (s.235(1), s.312(2) Criminal Procedure Act) — Failure to enter conviction is a fatal irregularity rendering judgment null — Appeals from null proceedings invalid — Order to compose proper judgment.
2 December 2015
November 2015
Stay refused where arbitration clause covered only part of claim and applicant failed to show readiness to arbitrate.
Arbitration — stay of proceedings under s.6 Arbitration Act — applicability of arbitration clause to dispute; readiness to arbitrate; undisputed claims; undue expense and prejudice as grounds to refuse stay.
30 November 2015
A withdrawn application does not exempt the applicant from costs; costs follow the event absent good reason.
Civil procedure — Withdrawal of application — Costs normally follow the event — Section 30(2) Civil Procedure Code requires reasons to depart — Notice of intended withdrawal insufficient to deny costs — Successful party entitled to costs where respondent incurred expenses preparing and attending.
27 November 2015
A bill of costs must be filed within 60 days of judgment pronouncement; late taxation is incompetent for want of jurisdiction.
* Taxation of costs – Bill of costs is an application under item 21, Part III, First Schedule to the Law of Limitation Act – 60-day limitation period. * Limitation accrues from date judgment/decree is pronounced; no requirement to attach judgment/decree when filing bill of costs. * Filing a bill of costs after the 60-day period renders taxation proceedings incompetent for want of jurisdiction. * Discretion on reasonableness of disbursements not reached where jurisdiction is lacking.
26 November 2015
A bill of costs must be filed within 60 days of pronouncement of judgment; late taxation was incompetent and set aside.
* Civil procedure – Taxation of costs – Bill of costs falls under item 21 Part III First Schedule Law of Limitation Act – 60‑day limitation applies. * Limitation – commencement – limitation period for bill of costs runs from date judgment/decree is pronounced; absence of appended judgment/decree does not delay commencement. * Jurisdiction – proceedings filed after limitation period are incompetent; Taxing Officer lacks jurisdiction.
26 November 2015
A sale was frustrated by a government ownership claim; court denied specific performance and ordered refund of the deposit with interest.
Contract law – frustration of contract by third‑party government claim; effect of frustration relieving both parties from performance; remedy of restitution under s.73 Contract Act; refusal of specific performance where contract objective is frustrated and significant time has elapsed; award of interest and partial costs.
26 November 2015
Application to extend time for filing a witness statement struck out for being incompetently brought and lacking sufficient cause.
* Civil Procedure/Commercial Rules – Extension of time to file witness statements – Rule 50 not a proper basis; witness statements are evidence-in-chief not appeals or applications under Limitation Act; recourse to section 95 CPC appropriate. * Procedure – Competency of application – Court may strike out application suo motu under rule 63(b). * Delay – Applicant must account for each day of delay and show that proposed witness was uniquely competent to testify.
26 November 2015
Court appointed NCC as arbitrator after respondent's unproven objections to the applicant's proposed nominee.
Arbitration Act s.8(2) – Court power to appoint arbitrator; impartiality and qualifications of nominee; institutional arbitration under NCC/TIArb rules; evidentiary burden for disqualifying an arbitrator.
25 November 2015
A suspension that prevents licence performance may constitute termination and breach where justification is unproven.
* Commercial law – Marketing Licence Agreement – existence established by opponent’s admission and annexed copy in witness statement. * Contract law – suspension vs termination – a suspension that prevents contractual performance may amount to termination and breach. * Evidentiary burden – party alleging non-performance must produce credible inspection, sales or financial evidence; mere credit request insufficient.
24 November 2015
Pleadings must be signed by an advocate on the roll; firm-name endorsement is defective but curable by amendment.
Advocates Act — definition of "advocate" — pleadings must be signed/endorsed by an individual advocate on the roll; law firm name alone is not a recognised advocate; defect is irregular but amendable under substantial justice principle.
20 November 2015
Diligence and lack of notice can justify extension of time to challenge dismissal for want of prosecution.
Extension of time – Section 14, Law of Limitation Act – Application to set aside dismissal for want of prosecution under Rule 31(1)(a) – Diligence by applicant and lack of notice from registry – Each case decided on its facts; extension granted.
20 November 2015
Attachment application dismissed for failure to prove ownership and lacking required official searches.
* Execution – Attachment of immovable property – Requirement that properties to be attached be proved to belong to the judgment debtor – Order XXI Rules 12 and 15, Civil Procedure Code (Cap.33 R.E.2002). * Evidence – Official searches and title documents – photocopy of foreign title insufficient without recent official search to establish current ownership. * Execution procedure – Court may dismiss defective execution application but allow refiling if applicant complies with statutory requirements.
16 November 2015
Court dismissed counterclaim for lack of pleaded valuation and ordered amendment of defective defence pleadings.
Commercial procedure – pecuniary jurisdiction – plaintiff’s valuation controls – substantive claim value governs jurisdiction, not quantified general damages; pleadings format – Rule 19(1) non‑compliance is procedural irregularity to be cured by amendment rather than dismissal; counterclaim dismissed for lack of valuation/valuation report.
13 November 2015
Agent who collected municipal levies but failed to remit funds breached the contract; defendant's counterclaim granted.
Contract law – breach by agent for failure to remit collected public levies; agency/representative evidence; negligent misstatement – no liability where municipal direction to collect at reduced lawful rate; counterclaim for unpaid levies granted.
13 November 2015
A missing drawer’s name/signature does not fatally defect a plaint signed by a qualified advocate; preliminary objection overruled.
Advocates Act ss.43–44 – signature and name of drawer of pleading – provisions target unqualified persons, not qualified advocates; preliminary objection on technicality; sparing use of constitutional arguments; dispensing justice without undue technicalities.
12 November 2015
Reported
A plaint signed by the applicant's advocate is not fatally defective for omitting the drawer's name under the Advocates Act.
* Advocates Act (ss.43–44) – applicability to unqualified persons versus qualified advocates; pleading formalities – requirement for drawer's name/signature. * Civil procedure – preliminary objection – striking out for technical non‑compliance. * Constitutional law – avoid invoking Constitution where ordinary law suffices; spare use of constitutional provisions.
12 November 2015
Whether a plaint without the drawer's name/signature is fatally defective when signed by a qualified advocate.
Advocates Act ss.43–44 – Requirement of name/signature of drawer – Applicability to unqualified persons not to qualified advocates; Preliminary objection – technicalities versus substantive justice; Constitution – reserve use where statutory law suffices.
12 November 2015
Unproven settlement and unsubstantiated fraud allegations do not amount to sufficient cause to set aside an ex parte judgment.
* Civil procedure – Setting aside ex parte/default judgment – Order IX r.13 CPC – requirement to show lack of service or sufficient cause. * Settlement agreements – effect on pending proceedings – failure to record/raise settlement does not excuse non-appearance. * Fraud/misrepresentation – higher evidential standard required to vitiate judgment. * Discrepancy in execution amount not a ground to set aside default judgment.
12 November 2015
Applicant failed to prove sufficient cause or fraud to set aside an ex parte judgment; application dismissed with costs.
Civil procedure – Setting aside ex parte judgment under Order IX r.13 – requirement to show lack of service or sufficient cause; Settlement agreements reached outside court – effect on attendance; Allegations of fraud/misrepresentation – higher standard of proof in civil cases; Discrepancy in execution sum not ground to set aside ex parte decree.
12 November 2015
Court struck out late counter-affidavits for non-compliance with timetable; oral extension without leave was incompetent.
Civil procedure – compliance with court orders – late filing of pleadings – exercise of inherent powers not to cure counsel’s negligence; Order XLIII CPR – applications to be by chamber summons supported by affidavit unless leave obtained; striking out late affidavits and loss of right to oral reply.
12 November 2015
Court granted temporary injunctions restraining share settlement and transfers pending suit, limited to six months, costs in the cause.
Civil Procedure – Interim injunctions under Order XXXVII r.1 and r.3 – restraints on stock exchange and share transfer registration pending main suit; duration limited to six months (extensions up to one year aggregate); costs in the cause where respondents concede.
12 November 2015
An application to extend a commercial case lifespan filed after the prescribed window is time-barred and incompetent.
Commercial Court practice — lifespan of cases (10–12 months) — Rule 32(3) prescribes oral application within 30 days before expiry — absence of post-expiry extension by design; Rule 4 and s95 CPC cannot circumvent specific time limits; missed window requires s14(1) Law of Limitation Act application first.
10 November 2015
Court disallowed late attempt to summon an unlisted witness without a required witness statement, finding it circumvents Commercial Rules.
* Civil Procedure – Order 16 Rule 1 CPC – scope and application to party witnesses; cannot be used to add unlisted witnesses without filed witness statements under Commercial Rules. * Commercial Division Procedure – Rule 49 – mandatory filing of witness statements within seven days after failed mediation and before settlement of issues; no provision for late additions or extensions. * Court’s power to summon strangers – Order 16 Rule 14 CPC – court may of its own motion summon persons not called by parties. * Abuse of process – using Order 16 Rule 1 to circumvent Rule 49 amounts to procedural abuse.
9 November 2015
Admission of a mortgage loan plus evidence of part-payment can justify leave to defend a mortgage summary suit.
Mortgage summary proceedings; Order XXXV Rule 3 as amended by section 25(b) Mortgage Financing (Special Provisions) Act 2008; leave to defend requires demonstration that loan (or portion) was discharged or not taken; admission plus proof of part-payment may satisfy threshold; arguable title-transfer issue affecting mortgagor status warrants full trial.
6 November 2015
Reported
Contractual overpayment claims against the supplier (2006–2009) were time-barred; bank’s preliminary objections were overruled.
Civil procedure — preliminary objections — limitation of actions — Law of Limitation Act (six-year period for contract claims) — when cause of action accrues — cause of action and pleadings — frivolous/vexatious and abuse of process.
6 November 2015
6 November 2015
The respondent's counterclaim against the supplier was dismissed as time‑barred; the applicant's preliminary objections were overruled.
Law of Limitation – contractual claims governed by six‑year limitation (Part I, item 7); accrual dates determinative of limitation; Preliminary objections – limitation issues requiring factual/record scrutiny are unsuitable for summary disposal; Cause of action – material facts alleging transfers and non‑payment suffice to plead cause of action; Counterclaim – not frivolous or vexatious where it arises from same transactions as main suit.
6 November 2015
Applicants failed to show sufficient reasons to extend time to file witness statements; application dismissed with costs.
* Civil procedure – extension of time – application to enlarge time to file witness statements – requirement to show sufficient reasons and account for each day of delay. * Evidence – affidavits – necessity of supporting affidavit from alleged custodian of documents. * Procedure – reliance on illness or unavailability of counsel as ground for enlargement of time – insufficiency without corroboration. * Court of Appeal Rules – Rule 8 (points of law) not directly analogous to justify extension in Commercial Division without sufficient reasons.
4 November 2015
Res subjudice applies only where a prior suit's entire subject matter is identical; the plaintiff's loan claim may proceed.
* Civil Procedure – res subjudice – section 8 Civil Procedure Code – applicability requires identity of whole subject matter, same parties/title, prior suit pending in competent court.* Res subjudice vs common issues – ‘directly and substantially in issue’ demands entire subject matter identity, not mere overlap.* Preliminary objection – pleadings-tested on balance of probabilities.* Authorities: Mulla on CPC; Supreme Court of India guidance; local precedent on identity of subject matter.
3 November 2015
Res subjudice under section 8 CPC requires identical whole subject matter; defendants' stay objection was dismissed.
Civil procedure – res subjudice (section 8 CPC) – requires identity of the whole subject matter; mere overlap of issues insufficient; prior land suit did not render present loan recovery suit res subjudice.
3 November 2015
October 2015
An objector must prima facie prove bona fide title/registration at attachment date; failure leads to dismissal.
Execution — Order 21 Rules 57–62 — summary inquiry — objector must prima facie show possession under bona fide claim of title or registration at date of attachment; burden to adduce title documents; consent/compromise decree not set aside by Order 21 objection.
30 October 2015
Reported
Objector failed to produce prima facie title to resist attachment; summary proceedings cannot impeach a consent decree.
Civil procedure – Order XXI Rules 57–62 CPC – summary objection to attachment – objector must show prima facie title or registration/possession at date of attachment; hire‑purchase and registration establish saleable interest; consent/compromise decree not set aside in summary objection proceedings.
30 October 2015
Typographical mis‑citation and some legal wording in an affidavit do not render a leave application incurably defective; amendment permitted.
* Civil procedure — preliminary objections — mis-citation of statute — typographical error — amendment allowed under Rule 24(3)(a). * Evidence — affidavits — permissible content — distinction between factual statements and legal argument; affidavit containing some legal content but also factual matter not incurably defective. * Appellate practice — leave to appeal — enabling provision Section 5(1)(c) Appellate Jurisdiction Act (Cap 141).
30 October 2015
Reported
Court lifted corporate veil and held a company director personally liable for unpaid decretal sum, ordering payment within 30 days.
Civil procedure – Execution of decree – Order XXI Rules 9 & 10 – Arrest/detention of director as civil prisoner; Corporate law – Salomon principle and exceptions – Lifting corporate veil in exceptional circumstances; Execution pending appeal – Appeal does not stay execution absent order of stay; Inherent powers – Section 95 Civil Procedure Code used to lift veil and hold director personally liable.
30 October 2015
Court dismissed petition to set aside arbitral award: only misconduct, fraud, or facial error permit interference.
Arbitration Act s.16 – setting aside arbitral awards – grounds limited to misconduct, fraud/corruption or error apparent on the face of the award; Court’s supervisory role narrow – cannot re-open findings of fact or law; appeal in disguise principle; jurisdictional objections may be decided preliminarily.
30 October 2015
Applicant granted extension to apply to set aside default judgment due to substituted service and prior counsel’s mishandling.
* Civil procedure – extension of time – application to set aside default/ex parte judgment – sufficiency of reasons for delay. * Service – substituted service by publication – propriety where respondent alleged to know applicant’s whereabouts. * Inaction or mishandling by previous counsel – relevance to accounting for delay.
29 October 2015
Summary judgment entered where defendants' leave to defend was struck out and plaint's allegations deemed admitted.
* Civil Procedure – Summary judgment – Order XXXV r.2(2)(a) CPC – application for leave to defend struck out – plaint's allegations treated as admitted; * Purpose of summary procedure: expeditious disposal where defendant has no substantial defence; * Reliefs: principal, contractual interest to judgment date, post-judgment interest (7%), costs.
29 October 2015
Where defendants fail to apply to defend under Order XXXV, court may enter summary judgment for debt, interest and costs.
* Civil Procedure – Summary procedure – Order XXXV r.2(2)(a) CPC – Effect of failure to apply for leave to defend – Allegations deemed admitted and entitlement to summary judgment. * Commercial/Banking law – Recovery of debt – Award of pre-judgment and post-judgment interest and costs in summary judgment.
28 October 2015
Failure by the applicant to cite the correct sub‑rule for leave to defend is a fatal irregularity; application struck out.
Civil procedure — preliminary objection — improper or non‑citation of enabling provisions — fatal irregularity; amendment after preliminary objection prohibited; mortgage summary suit — Order XXXV rule 3 (as amended by Mortgage Financing (Special Provisions) Act) governs leave to defend.
28 October 2015