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.

25 judgments
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25 judgments
Citation
Judgment date
March 2020
Preliminary objection that royalty claims were time-barred dismissed; accrual depends on claimant's knowledge, not assumed 2011.
Limitation law – accrual of cause of action – when claimant knew of defendant's mining; Limitation Act ss.3(1) and 7 – continuing breach; Pleadings and annexures – factual particulars vs standalone causes of action; Evidence required to establish accrual date.
30 March 2020
A plaintiff must be the registered NGO (body corporate) to sue; a factual dispute on incorporation is not a pure preliminary point of law.
Civil procedure – preliminary objections – legal capacity to sue under NGO Act; Corporations law – body corporate vs board of trustees; Amendment of pleadings – impermissible to pre-empt a raised preliminary objection; Preliminary points of law – Mukisa test requiring the point to be pure law without need for evidence.
27 March 2020
Urgent injunction withdrawn and costs awarded to respondent for failure to disclose related appeal.
Civil Procedure – Interim injunctions – ex‑parte relief requires full and fair disclosure where urgency is asserted; Withdrawal of application – permissible when overtaken by events but subject to costs; Costs – generally follow event but are discretionary; Failure to disclose related pending appeal is relevant to costs.
27 March 2020
The court held the standards authority lawfully refused re‑export of unfit perishable imports; the applicant's suit was dismissed with costs.
Standards law – Authority of standards bureau to inspect imports and direct re‑export or disposal; Regulation 9(2) – re‑export or disposal of non‑conforming goods; final on‑arrival inspection may override pre‑shipment certification; burden of proof in civil suits; perishable goods public‑health protection.
27 March 2020
The plaintiff recovered USD 300,000 for goods stolen in the defendant’s custody and USD 20,000 general damages, with interest and costs.
Commercial law – custody of goods at inland container depot – theft of goods while in ICD custody – admissibility and authentication of valuation documents – proof of specific (special) damages and requirements for strict pleading – award of general damages for non-pecuniary loss – interest on pecuniary award.
27 March 2020
Applicants granted leave to defend a summary suit after showing triable disputes over payments and delivery.
Summary suit – Leave to defend under Order 35 rule 3(1)(b) CPC – Affidavit must disclose triable issues or arguable defence – Disputed payments and alleged delayed delivery held triable – Leave granted; costs to follow cause.
27 March 2020
Defendants breached MOU by failing to deliver buses; refunded TZS 355,000,000; remaining liability TZS 41,000,000 plus interest and damages.
Contract law – breach of Memorandum of Understanding for sale of goods – failure to deliver within agreed time – entitlement to refund; evidential burden and adverse inference where plaintiff fails to call material witness; assessment of proved payments from bank transfer evidence; award of interest and general damages for breach.
27 March 2020
Applicant failed to show sufficient cause for extension of time to set aside ex-parte judgment; application dismissed with costs.
Civil procedure — extension of time under s.14(1) Law of Limitation Act — "sufficient cause"; applicant must account for delay and provide credible evidence
Suretyship — guarantor’s liability and effect of creditor’s failure to issue demand/default notice absent contractual term
Evidence — necessity of corroborating proof for claims of overseas medical treatment or inability to attend court
Execution — attachment, public auction and certificate of sale enforce decree against mortgaged property
26 March 2020
Court overruled objection and allowed reliance on section 95 CPC due to lacuna in specific statutory remedy.
Taxation — challenge to Taxing Master's ruling — competence and citation of law — lacuna in Court Broker's Rules — resort to section 95 CPC and inherent jurisdiction — Rule 2(2) Commercial Division Rules — preliminary objection overruled.
25 March 2020
Default judgment refused where service, substituted publication and documentary proof were inadequate.
Service of process — proof required; substituted service by publication — need to annex newspaper copies and particulars; documentary evidence — originals or certified copies, invoices/delivery notes required to prove supply; burden of proof in default judgment; compliance with High Court (Commercial Division) Rules (Form No.1).
25 March 2020
Directors and other participants who introduced an impostor guarantor held jointly and severally liable for unpaid loan and damages.
Commercial law – loan recovery – credit facility secured by mortgage later declared void due to impersonation.* Fraud – impersonation of mortgagor and participation by introducers/directors – causal link to bank's loss and liability.* Civil procedure – ex parte hearing where defendants default – reliance on plaintiff's uncontroverted evidence.* Remedies – declaratory relief, payment of outstanding loan, default and post-judgment interest, general damages and costs.
24 March 2020
Substituted service alone does not entitle a plaintiff to default judgment absent admissible authenticated evidence of the debt.
Commercial law – Default-judgment application; substitutional service by publication; Evidence Act (ss.66–79) – requirement for originals or admissible secondary evidence; authentication of bank statement printouts and certificates of authenticity; burden of proof and sufficiency of affidavit evidence.
24 March 2020
Leave to appeal granted on whether trial court wrongly applied 'account for each day' requirement in setting aside ex‑parte order.
Leave to appeal; discretion to grant leave; setting aside ex‑parte orders; requirement to account for each day of delay; substantial question of law/prima facie case.
23 March 2020
Default judgment granted where defendant, served abroad, wrongfully cancelled an inspected shipment, entitling plaintiff to damages.
Commercial law – breach of contract – wrongful cancellation after inspector approval; estoppel against after-the-fact defect claims Civil procedure – default judgment under Rule 22(1) (Form No.1 and affidavit in proof) where defendant served abroad fails to file defence Service abroad – courier and email service under Order V Rules 17 & 29 Remedies – damages for price difference, contractual interest, post-judgment interest and costs
20 March 2020
Default judgment granted for contractual non‑remittance where plaintiff proved claim under amended Rule 22; foreign enforcement declined.
Commercial law – breach of contract – failure to remit administration fees and penalties under PVoC contract. Civil procedure – default judgment – amended Rule 22(1) requires proof of service, Form No.1 and an affidavit in proof of claim
Service – email and international courier (DHL) to foreign defendant accepted as proof of service
Remedies – award of principal sum and commercial interest; costs awarded. Foreign enforcement – execution under Reciprocal Enforcement of Foreign Judgements Act declined pending registration/procedure in foreign jurisdiction
20 March 2020
Contract partly breached by both parties; plaintiff awarded limited October 2017 pay and statutory contributions, other claims dismissed.
Commercial contract – supplier/customer relationship – employment agency status of supplier – statutory compliance as contractual obligation; breach of contract by both parties; no frustration by government directive (cancellation of licence); partial damages for services rendered; interest and costs ordered.
19 March 2020
Interlocutory rulings in pending arbitration are not appealable; leave to appeal was refused and application dismissed with costs.
Arbitration law — interlocutory/interim arbitral awards — appealability — Appellate Jurisdiction Act s.5 and s.5(2)(d) — The Written Laws (Miscellaneous Amendments) Act No.25 of 2002 — finality test (Bozson) — leave to appeal discretionary.
18 March 2020
Applicant failed to show good cause for extension; counsel negligence and resignations insufficient to justify delay.
Commercial procedure – extension of time to file defence – Lyamuya guidelines – applicant must account for each day of delay and show diligence; counsel’s negligence or abrupt resignations do not ordinarily justify extension; overriding objective does not excuse procedural non‑compliance.
17 March 2020
A tax dispute over import duty falls within the Tax Revenue Appeals Board’s exclusive jurisdiction; suit dismissed.
Tax law – Jurisdiction – Statutory ouster of ordinary courts where Tax Revenue Appeals Board/Tribunal has original jurisdiction under Tax Revenue Appeals Act. Administrative law – Revenue disputes – Proper forum for challenges to import duty assessments. Civil procedure – Pleading requirements – Particulars required for negligence and fraud (Order VI r.4 CPC). Customs law – Requirement to follow statutory review procedures under East African Community Customs Management Act
16 March 2020
Court restored dismissed commercial suit where advocate's AGM absence lacked notice but caused no prejudice to respondent.
Commercial procedure – Rule 43(2) – application to set aside dismissal for non-appearance – advocate attending professional AGM – Chief Registrar’s circular not a substitute for notice to court – requirement to notify court of intended absence – prejudice to respondent as factor in discretion to restore – no order as to costs.
13 March 2020
The applicant's trademark infringement and passing‑off claims dismissed; respondent's registered mark held valid.
Trade marks – registration and distinctiveness – comparison of composite marks by overall impression (anti‑dissection rule). Trade marks – infringement – likelihood of confusion (visual, aural, conceptual) and consumer perception. Trade marks – statutory protection of validly registered marks and available statutory defence to later users. Passing off – necessity to prove goodwill, misrepresentation and damages; special damages must be specifically pleaded and proved
12 March 2020
Loan agreement void for lack of licensing and proof of disbursement; plaintiff's recovery claim dismissed.
Contract law – loan agreement held void for uncertainty and illegality where lender failed to prove regulatory/licensing authority; Evidence – plaintiff's failure to produce bank/transaction records defeats claim; Guarantors' liability contingent on valid enforceable loan.
11 March 2020
Application to amend witness statement and documents struck out for failure to properly move the Court.
Commercial procedure – amendment – witness statements are not pleadings and cannot be amended under provisions meant for pleadings; wrong citation of enabling provisions renders an application incompetent; departure from scheduling order requires leave under Order VIII Rule 4 CPC (via Rule 2(2) of the Rules).
10 March 2020
Belated discovery of evidence does not justify leave to withdraw and refile; suit withdrawn without leave and costs awarded.
Civil Procedure – Withdrawal of suit with leave to refile – Order XXIII Rule 1(2)(a),(b) CPC – New evidence discovered after filing not a "formal defect" or sufficient ground – Duty to prepare evidence before instituting suit – Amendment under Order VII Rule 14(2) – Prejudice and abuse of process – Costs.
4 March 2020
Court set aside arbitral award because enforcing it would compel the respondent to breach public procurement law.
Arbitration – setting aside award – illegality apparent on face – award enforcing payments contrary to Public Procurement Act and Regulations; variations exceeding statutory threshold without Tender Board approval
Arbitration – procedural fairness – failure to address issues does not automatically amount to misconduct; court cautious to disturb arbitral awards
3 March 2020