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.

76 judgments
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76 judgments
Citation
Judgment date
December 2019
Payment bonds were unenforceable due to non-payment of premium and breach of the underlying facility by beneficiary and borrower.
* Guarantees/Payment bonds – validity – subject to URDG 2010 but governed by Tanzanian law; consideration (premium) required to perfect bonds; non-payment renders bonds unenforceable. * Contract law – consideration and perfection of securities; section 79 Law of Contract Act. * Variation/disbursement – material variation of underlying facility discharges surety (section 85). * Demand guarantee procedure – beneficiary must act in good faith and support demand with underlying documents (LC, bill of lading).
13 December 2019
September 2019
Default judgment granted where amended Rule 22(1) requirements were met and breach of contract for non‑delivery caused quantified losses.
Commercial Procedure Rules – Rule 22(1) (amended) – Default judgment prerequisites: proof of service, application in Form No.1 and affidavit in proof – Breach of contract for non‑delivery of moulds/changeover parts – Assessment of damages on balance of probabilities – Interest and costs – Publication condition before execution (Rule 22(2)).
27 September 2019
Default judgment for unpaid bank loan granted where defendants defaulted, were duly served, and documentary proof established indebtedness.
Commercial law – Credit facilities – Existence of loan agreement – Mortgage, debenture and personal guarantees – Default and breach – Default judgment under Commercial Division Rules – Proof by documentary evidence – Award of contractual and post-judgment interest and costs.
26 September 2019
Challenge to arbitral award dismissed: petitioner failed to prove misconduct or improper procurement; costs within arbitrator’s discretion.
Arbitration — Setting aside award — Section 16 Arbitration Act — Misconduct vs. improperly procured award — Errors of law or fact not grounds unless on face of award — Arbitrator’s discretion to award and tax costs.
26 September 2019
Arbitral award set aside because Attorney General was not notified or allowed to intervene as required by amended law.
Arbitration — Treasury Registrar — Written Laws (Miscellaneous Amendment) (No.3) Act, 2016 — mandatory right of Attorney General to intervene — statutory duty to notify — failure to notify renders arbitration award improperly procured.
26 September 2019
Leave to defend granted where applicants raised triable issues of misrepresentation, payment and unauthorized operation of a frozen account.
Commercial procedure – summary suit – leave to defend under Order XXXV Rule 3(1)(b) – triable issues (misrepresentation, payment, operation of frozen bank account) – evidential burden in opposing affidavits – relevance of Order XXXV Rule 3(1)(c) and Mortgages Financial (Special Provisions) Act.
20 September 2019
A joint defence signed by one defendant for others was held valid and preliminary objections were overruled with costs.
Civil procedure — validity of joint written statement of defence signed by one defendant on behalf of others; Order III(2)(a) interpreted as relating to appearance, not signing pleadings; signature and verification of pleadings; harmless‑error doctrine; impermissible amendment of objections by written submissions without leave; sufficiency of denials under Order VIII to defeat summary judgment.
20 September 2019
Res sub judice requires identical causes of action; procedural font defects are curable and not fatal to a plaint.
* Civil procedure – res sub judice – applies where parties and matter in issue are directly and substantially the same; different causes of action defeat application. * Commercial procedure – Rule 19(1) formatting requirements – non‑compliance is procedural and not necessarily fatal; rejection at admission stage. * Overriding objective – procedural rules are handmaid, not mistress, of justice; court may overlook technical defects to secure substantial justice.
20 September 2019
Decree holder’s right to apply to bid accrues from proclamation of sale; 60‑day limitation applies and court allowed bidding and set‑off.
* Civil Procedure – Execution – Order XXI r.70 – Decree holder’s leave to bid – accrual of right from proclamation of sale; * Limitation – where CPC silent, Item 21 Third Schedule Limitation Act (60 days) applies; * Evidence – late application to expunge affidavit paragraphs disallowed; * Execution practice – court may permit decree holder to bid and order set‑off of purchase price.
20 September 2019
Applicant granted extension to file TRA witness statement; request to file additional witness statement refused.
* Civil procedure – extension of time – sufficient reasons and accounting for delay – internal verification by government agency (TRA) may justify delay. * Evidence – witness statement as testimony in chief – no room for supplementary/additional witness statements after testimony in chief is closed. * Commercial Division procedure – amendments permitting filing of witness statements after Final Pre‑Trial Conference reduce likelihood of prejudice from late filing.
20 September 2019
Court conditionally ordered arrest and detention to execute a decree after judgment debtors failed to show cause or produce supporting evidence.
Execution — Order XXI Rule 10(2)(j)(iii) CPC — Arrest and detention as mode of execution; Order XXI Rule 35(1) — show cause hearing required before deprivation of liberty; No legal requirement of prior formal demand before applying for arrest and detention; Court may grant conditional period to satisfy decretal sum; upkeep obligations under Order XXI Rule 38 CPC.
17 September 2019
Extension of time to set aside ex parte judgment refused for failure to show sufficient cause and account for delay.
Extension of time – Law of Limitation Act s.14(1) – requirement to show sufficient cause and account for each day of delay – evidential burden in supporting affidavit – notice via counsel and correspondence – limits to applying overriding objective principle.
17 September 2019
Default judgment denied where unauthenticated documents and affidavit failed to prove loan existence or breach.
Default judgment (Rule 22(1)) — affidavit must prove claim; documentary exhibits must be admissible and authenticated; photocopies/electronic statements require certification or compliance with Electronic Transactions Act; plaintiff bears burden to prove existence, terms and breach of loan agreement.
13 September 2019
Plaintiff proved breach of security contract and obtained Tshs.143,106,373.25 plus interest and costs.
Contract law – breach of service contract; Damages – special damages proven by invoices; Evidence – ex parte hearing, credibility of single witness corroborated by documents; Pleadings – general/evasive denials insufficient; Interest – pre-judgment 12%, post-judgment 7% per annum.
12 September 2019
Leave to appeal granted where trial judge raised suo motu issues and denied the applicant the right to be heard.
Civil procedure — leave to appeal under s.5(1)(c) AJA — distinction between enabling and procedural provisions — non‑citation of Court of Appeal Rules not fatal; Affidavit verification — governed by Order XIX and relevant statutes — sub‑paragraphs included by verification of numbered paragraph; Right to be heard — court may not decide suo motu issues affecting parties without hearing — remedy includes leave to appeal.
12 September 2019
Bank's loan claim proved; court pierced corporate veil and held directors personally liable for unpaid loan, interest, damages and costs.
* Commercial/Contract law – existence and breach of loan/credit facilities and guaranty agreements – proof by sanction letters, debentures, mortgages and bank statements. * Corporate law – lifting/piercing the corporate veil where directors obstruct receivership and frustrate enforcement of creditors’ rights. * Remedies – award of principal, contractual/commercial interest, post‑judgment interest, general damages and costs.
11 September 2019
Stay of execution and restitution refused; existing prohibitory status quo extended pending determination of related application.
* Civil procedure — interim reliefs — maintenance of status quo, stay of execution, restitution — requirements for grant (imminent danger, irreparable injury, balance of convenience). * Temporary injunction — Attilio v Mbowe principles (triable issue, irreparable harm, balance of convenience). * Summary procedure — challenge to decretal sum and adequacy of evidence to set aside summary judgment. * Order XXI Rule 24(3) CPC — security and protection of decree-holder rights; prohibitory orders as interim protection.
11 September 2019
Plaintiff failed to prove unpaid balance under vehicle sale; both claim and counterclaim dismissed for lack of evidence.
Sale of goods/hire‑purchase – evidence – parties agreed sale of six buses but disputed payment terms – failure to tender written agreements referenced in pleadings – adverse inference – inconsistencies in account exhibit – burden of proof on each party for claim and counterclaim – failure to produce bank pay‑in slips/receipts – dismissal of claim and counterclaim.
10 September 2019
Court exercised inherent jurisdiction to extend expired commercial 'speed track' life span and granted four-month extension with costs.
Commercial Court procedure — Rule 32(3) speed track life span — expiry and lacuna; Civil Procedure Code ss.93 & 95 — enlargement of time and inherent jurisdiction; GN. No.107/2019 (Rule 32(4)) — Court’s power to extend life span; whether expiration permits striking out or dismissal; extension granted with costs.
10 September 2019
A Rule 75 application cannot effect substantive changes to a ruling; appeals or review are the proper remedies.
* Civil procedure – Rule 75 (High Court (Commercial Division) Procedure Rules) – rectification limited to clerical or arithmetical mistakes and accidental slips; does not permit substantive alteration of discretionary rulings. * Arbitration – stay of proceedings pending arbitration – orders granting or refusing stay are challengeable by appeal (s.5(1)(b)(v) AJA) or review (Order XLII R1 CPC), not by Rule 75 amendment applications. * Affidavit practice – objection that paragraphs are argumentative raised but not decided where preliminary points dispose of application.
10 September 2019
Plaintiff’s claim dismissed: contradictions between testimony and documentary exhibit defeated proof of the alleged vehicle sale.
Commercial law – alleged sale of motor vehicles; sufficiency of evidence to prove contract; contradictions between pleadings, witness testimony and documentary exhibit; effect of inconsistent documents on proof of contract; ex parte proceedings and costs.
9 September 2019
Stay of execution refused where the alleged related application was already dismissed and no pending challenge existed.
Execution law – stay of execution – requirement of pending suit/appeal/review/revision to support stay; proclamation of sale – alleged illegality but unpleaded; attachment and execution orders – validity where no pending challenge; procedural requirement – parties bound by chamber summons.
4 September 2019
Petitioner failed to prove administration would restore the company as a going concern or better realise assets; petition dismissed with costs.
Companies Act — administration orders (ss. 247, 248) — requirements: company unable or likely to become unable to pay debts; purposes (survival as going concern; more advantageous realisation than winding up) — necessity for specific evidence (stock lists, valuations, location, management/turnaround plan, funding and timeline) — speculative assertions insufficient — petition dismissed with costs.
4 September 2019
Application for extension to appeal struck out as overtaken by events due to pending appeal and default judgment.
Extension of time — discretionary relief — sufficiency of reasons — application rendered overtaken by events where main suit decided and related appeal pending; appealability of interlocutory order; stay of proceedings application; arbitration clause and responsibility to initiate arbitration; redundancy of parallel proceedings.
4 September 2019
Filing a notice of appeal to the Court of Appeal ousts the High Court’s jurisdiction to hear an application to set aside that judgment.
* Civil procedure – jurisdiction – effect of filing a notice of appeal – filing notice of appeal to Court of Appeal deprives High Court of jurisdiction to entertain proceedings arising from that judgment. * Civil procedure – ex parte judgment – proper remedy to set aside is by application under Order IX Rule 13(1) CPC, not by appeal. * Commercial Court practice – preliminary objection on jurisdiction – to be examined even where respondent absents.
3 September 2019
Application to pierce corporate veil and detain managing director denied for lack of proof and premature execution steps.
* Execution of decree – modes of execution – arrest and detention of judgment debtor as civil prisoner – Order XXI Rule 28 CPC. * Lifting/piercing corporate veil – exceptions where company used as sham, fraud or to avoid legal duty – burden to prove dishonesty or fraudulent design. * Decree holder’s duty to identify assets for attachment before seeking extraordinary execution relief. * Constitutional protection of personal liberty (Article 15) limits intrusive execution measures.
2 September 2019
August 2019
Plaintiff entitled to refund for undelivered and auctioned fuel; fraud claim failed and deposited title deed did not create security.
* Commercial law – sale of goods – pro‑forma invoices and payment records as evidence of purchase and non‑delivery. * Tax liability – where sale price is tax‑inclusive, seller’s failure to remit taxes can render seller liable for loss when TRA seizes and auctions goods. * Evidence – burden of proof on allegations of fraud/criminal conspiracy; absence of criminal investigation undermines civil fraud claim. * Company law – separate legal personality; single‑director acknowledgment does not bind company absent board authority. * Security by deposit of title deed – no lien arises absent a lender‑borrower relationship and valid acknowledgment of debt. * Remedies – award of principal sums, interest (Bank of Tanzania lending rate and decretal rate) and costs.
9 August 2019
May 2019
A court order was reviewed for being issued without hearing the parties, violating the right to be heard.
Civil Procedure – Review – Right to be heard – Mistake apparent on face of record – Restoration of application for hearing.
31 May 2019
April 2019
Non-resident plaintiff may be ordered to give security for costs; USD 5,000,000 was excessive, court ordered Tshs 20,000,000.
Civil Procedure – Security for costs – Order XXV r.1 & r.2 CPC – Non-resident plaintiff – Purpose of security to cover court costs (not commercial losses) – Admissibility of evidence in written submissions – Quantum of security – Discretionary relief.
30 April 2019
Applicant's unexplained inordinate delay and unpleaded illegality claim led to dismissal of extension to stay execution.
Law of Limitation – extension of time – sufficient cause for delay; Rejoinder – new unpleaded point of illegality not entertained; Defective decree – curable/rectifiable under procedural rules and not ground for extension; Execution – defective decree cannot be executed until rectified but rectification belongs to execution proceedings.
29 April 2019
Application to stay sale in execution dismissed as incompetent due to wrong statutory citation; amendment at hearing refused.
* Civil procedure – competence of application – wrong citation of enabling provision – wrong citation fatal and renders application incompetent. * Civil procedure – amendment of pleadings – amendments to cure citation errors must be sought before hearing; court will not amend pleadings at hearing to cure competence defects. * Execution law – stay of sale in execution – application under wrong provision cannot be entertained.
24 April 2019
The plaintiff failed to prove interest waiver; after the defendant wrote off the debt the retained title must be released.
* Commercial law – overdraft facility – security by mortgage – distinction between reduction and waiver of interest; construction of debtor's letter.* Deed of undertaking – acknowledgement of debt and repayment schedule – effect when signed by debtor only.* Interest capitalisation on default – calculation and impact on outstanding balance.* Debt write‑off – consequences for lender's right to retain security; release of title after write‑off.* Remedy – dismissal of damages claim and order for release of certificate of title.
24 April 2019
Court upheld Taxing Master's reduction of instruction fees due to lack of EFD receipts and failure to prove claimed costs.
Costs — Taxation of bill of costs — instruction and perusal/consultation fees — requirement to prove payments by EFD receipts under Tax Administration Act — burden of proof (Evidence Act) — discretion of Taxing Master — when High Court may interfere.
24 April 2019
Failure to annex the original or certified arbitration agreement to a stay petition is fatal; petition struck out with costs.
* Arbitration — Rule 8, GN No. 427 of 1957 — Requirement to annex the original or a duly certified copy of the submission to a petition for stay — Mandatory compliance — Non-compliance fatal. * Stay of proceedings pending arbitration — Procedural requirements for petition competence. * Interpretation — Mandatory wording of rules cannot be dispensed with merely because the agreement’s existence may be undisputed.
23 April 2019
The applicant's seven-month unexplained delay after appeal was struck out did not justify an extension of time.
Extension of time – section 11(1) Appellate Jurisdiction Act – discretionary exercise – Lyamuya guidelines – applicant must account for each day of delay – court-caused procedural defects excusable only for period prior to striking out – unexplained post-strike-out delay fatal.
23 April 2019
Plaintiff proved loan and mortgage; transfer to company unproven; special damages denied, general damages TZS 70,000,000 awarded.
Commercial law – mortgage discharge after repayment – lender’s obligation to release title deed; proof of assignment/transfer of land – need for title deed or land registry search; special damages – strict proof required; general damages – compensation for distress arising from unlawful withholding of security; costs awarded to successful plaintiff.
12 April 2019
Applicant failed to prove non-service or sufficient cause; substituted publication service was valid; application dismissed.
Commercial procedure — Extension of time — Discretionary and requires sufficient cause; substituted service by publication — valid under Order V Rule 20 where personal service fails; burden to prove imprisonment/release (release order) — failure gives adverse inference; alleged illegality does not automatically excuse delay; "technical delay" requires promptness after earlier procedural defect.
12 April 2019
An application to be joined under Order 1 r.10(2) CPC must be filed within 60 days of awareness under the Limitation Act.
* Civil Procedure — Joinder of parties — Order 1 Rule 10(2) CPC — limitation where no period provided — Law of Limitation Act Part III item 21 (60 days). * Procedural law — effect of "at any stage" language — does not displace statutory limitation. * Joinder — distinction between court suo motu addition of parties and an applicant's late application to be joined. * Relief — late joinder application dismissed with costs for being filed without leave and out of time.
12 April 2019

Independence and separability of the arbitration agreement - Whether having several defendants is a bar for any one of them to pray for an order of stay of proceedings in court if there is an agreement and an arbitration clause. - The court’s duty to consider the rights of the parties in terms of multiplicity of proceedings and costs when ordering stay of proceedings pending arbitration

12 April 2019
Court granted extension to file appeal despite unexplained delay, because alleged illegality in the judgment warranted appeal.
* Extension of time – application under s.11(1) AJA and s.95 CPC – whether good cause shown; sufficiency of explanation for delay and requirement to account for each day. * Illegality – allegation that court raised and decided a point of law suo motu without hearing – whether alleged illegality justifies extension of time. * Discretionary relief – court may grant extension despite defects in explanation where the impugned decision raises serious questions of law affecting public/industry interest. * Evidentiary contradictions – weight of inconsistent affidavits and documentary evidence when assessing delay.
11 April 2019
Application to extend time to set aside dismissal dismissed for citing wrong provisions and unpleaded relief.
Commercial Court – application for extension of time to set aside dismissal – improper citation of legal provisions renders application incompetent; court moved by chamber summons not by submissions; unpleaded relief cannot be advanced by submissions.
11 April 2019
A dispute over a share purchase agreement is a commercial matter; plaint adequately framed and verification valid, so objections dismissed.
Commercial Division jurisdiction — whether share purchase agreement disputes constitute "commercial cases" (Rule 3(c)); Pleadings — compliance with Order II Rule 1 (proper framing to afford final decision); Verification — compliance with Order VI Rule 15(3) (date/place of verification).
10 April 2019
Interim injunction granted restraining respondent from removing 725 tonnes of rice pending the main suit; transfer permitted for treatment.
Interim injunction – restraint on removal or interference with goods; prerequisites for interim relief – prima facie case, irreparable harm, balance of convenience; permissive transfer of goods for preservation; respondent not opposing the application.
5 April 2019
5 April 2019
Applicant failed to show sufficient cause for extension of time; application dismissed with costs.
Extension of time – Law of Limitation Act s.14(1) – applicant must account for each day of delay – sufficiency of cause – pursuing Court of Appeal appeal, court vacation or advocate’s absence not automatically sufficient without evidence – s.21 inapplicable to post-appeal delay.
5 April 2019
A mortgagee sale without statutorily required notices is unlawful; purchaser’s protection arises only upon registration.
Land law – mortgagee sale – mandatory sixty‑day default notice (s.127 Land Act) and fourteen‑day auction notice (s.12 Auctioneers Act); failure fatal to sale; bona fide purchaser protection accrues on registration/transfer.
5 April 2019
Plaintiff's claim dismissed for failing to prove quantum and debt transfer, and for not tendering required claim forms.
Commercial contract — proof of debt — requirement of detailed claim forms under contract clause — absence of claim forms undermines invoices and bank statements; amendment of pleadings — parties bound by pleadings; corporate succession — public notice insufficient to prove assumption of predecessor's debts; failure to prove quantum — dismissal with costs.
5 April 2019
Applicant proved unpaid sales and the respondents remained liable under personal guarantees, judgment for monetary recovery.
Commercial law – breach of depot operator agreement and unpaid sales proceeds; enforcement of settlement agreement; personal guarantees by directors – construed as unlimited, personal and effective until valid revocation; change of directorship does not discharge a personal guarantee absent proper notice; remedies: declaratory judgment, monetary award, contractual and post-judgment interest, costs.
5 April 2019
Bank properly withheld confidential account information; plaintiff failed to prove negligence or loss.
Banking law – banker-customer confidentiality – Section 48(1) Banking and Financial Institutions Act 2006; Tournier principle; knowledge of account holder; negligence and proof of loss.
4 April 2019
Court granted unconditional leave to defend a summary mortgage suit due to bona fide triable issues about loan terms.
Summary procedure – mortgage claims – Order XXXV r.3(1)(c)(ii) CPC – leave to defend – statutory grounds (loan not taken or discharged) – bona fide triable issues – misrepresentation on currency of disbursement – discretion to grant unconditional leave despite non-compliance with strict statutory conditions.
4 April 2019