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.

27 judgments
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27 judgments
Citation
Judgment date
November 2023
A Taxing Officer must stay taxation proceedings when a Notice of Appeal to the Court of Appeal has been filed.
Taxation – stay of taxation proceedings pending appeal – effect of lodging Notice of Appeal on High Court jurisdiction. Civil procedure – point of law raising jurisdiction – duty of taxing officer to address jurisdictional objection
Advocates Remuneration – instruction fees – discretion of taxing officer and requirement (or not) for proof/receipts
30 November 2023
An application for extension to file a defence must be made within the statutory period; late applications will be dismissed.
Civil procedure – Extension of time – Rule 20(2), High Court (Commercial Division) Procedure Rules – Specific statutory time for making application for extension to file defence – Application outside seven‑day grace period invalid – Late engagement of counsel not good cause.
29 November 2023
Discovery under Order XI r.10 granted in part; overly general or third‑party documents refused.
Civil procedure – discovery of documents under Order XI rule 10 CPC; relevance and fairness as guiding principles; limits on fishing expeditions; possession/power requirement; competency of advocates’ affidavits.
28 November 2023
Whether pre-contractual emails estopped the respondent from repudiating and justified the bank's upfront 0.75% facilitation fee deduction.
Commercial/contract law – pre-contractual negotiations – when emails may create enforceable expectations or estoppel; relevance of pre-contractual exchanges as background or to found equitable relief. Banking law – banker–customer fiduciary duties; lawful debiting of customer accounts and proof required for deductions
Remedies – specific damages must be pleaded and strictly proved; general damages require reasons. Appellate procedure – first appellate court must re-evaluate evidence where trial evaluation was defective
27 November 2023
Claim dismissed where premium was unpaid, the plaintiff lacked ownership/insurable interest, and made material misrepresentations.
Insurance law – validity of cover conditional on full premium payment (cash-before-cover); insurable interest and vessel registration; uberrimae fidei (utmost good faith) and material misrepresentation; proof of loss; Insurance Premium Financing arrangements.
24 November 2023
A non-decree holder cannot sue to enforce another’s decretal sum; suit was premature, incompetent and struck out.
Civil procedure — Jurisdiction; res judicata and res sub judice — Effect of pending appeal at Court of Appeal on High Court jurisdiction; Assignment of decree — Order XXI Rule 14 CPC and proper procedure for assignee (execution application) — Locus standi to enforce decretal sums — Procedural competence and premature suits.
24 November 2023
Application to set aside default judgment dismissed for failure to show sufficient cause and no arguable defence.
Commercial procedure – Rule 23 HCCD Rules – setting aside default judgment; substituted service by publication – validity where ordinary service futile or party avoiding service; requirement to show sufficient cause and an arguable defence; alleged illegality must be apparent on the face of the record.
24 November 2023
Applicant failed to show sufficient reason to set aside default judgment given effective substituted service by publication.
Setting aside default judgment; sufficiency of reasons under Rule 23(2)(b); substituted service by publication as effective service; hearsay and need for affidavit from third-party witness.
20 November 2023
Court finds petitioners' membership intact, unlawful management and invalid share transfers; orders vacatur, meetings, and costs.
Companies Act s.233 – unfair prejudice – whether conduct (unauthorised bank accounts, exclusion from management, attempted share transfers) amounts to unfairly prejudicial conduct; membership/standing – whether petitioners were members when petition filed; validity of share transfers – powers of attorney, compliance with MEMARTS and board procedures; undue influence and attestation requirements (Evidence Act s.70); appropriate remedies – declarations, vacatur of premises, authorization to sue on behalf of company, AGM/directors’ meeting to appoint managing director.
17 November 2023
Court ordered compulsory sale of an untraceable shareholder's shares, valuation by court-appointed auditor, proceeds held by Administrator General.
Companies Act – compulsory sale of shares of an untraceable shareholder – court-appointed valuation – sale at fair market value – proceeds deposited with Administrator General – Registrar to update share register.
17 November 2023
Plaintiff's failure to pay the contract balance was a breach; defendant did not breach and suit is dismissed with costs.
Commercial law – Sale agreement – Partial payment and failure to pay balance – Breach of contract by purchaser; Termination agreement – effect and enforceability; Claim for refund and damages – burden of proof; Evidentiary reliance on written sale and termination agreements.
17 November 2023
High Court lifts warrant of attachment and restores property where a Court of Appeal stay and related application remain pending.
Commercial procedure — stay of execution by Court of Appeal; conditional bank guarantee; enforcement of decree by warrant of attachment; forum shopping and appropriate forum for rescission; restoration of attached property pending appeal.
16 November 2023
Court recognized and enforced a consent arbitral award as judgment, ordering specified instalments, currency terms, and SOFR+4.5% interest.
Arbitration – Consent (final settlement) award – Recognition and enforcement as judgment – Dispositive portion of award entered as court judgment – Enforcement modalities: instalment schedule, currency/equivalent, bank account, interest on overdue amounts (SOFR +4.5%).
15 November 2023
Leave to appeal granted where affidavit discloses arguable or novel legal issues; costs in the cause.
Appellate jurisdiction – leave to appeal – discretionary grant where proposed appeal is arguable, raises issues of general importance or novel points of law – reliance on established authorities – costs in the cause.
14 November 2023
The applicant lacked locus standi to sue for trade mark infringement because it was not the registered proprietor of the mark.
Trade mark law — Locus standi to sue for infringement — Registration required for exclusive right — Expungement of registration — Effect on infringement claims — Distinction between infringement and passing off — Trade and Service Marks Act ss.14, 30, 31; Paris Convention Art.6D.
14 November 2023
Plaintiff failed to prove on a balance of probabilities that the insured vehicle collided with the alleged third-party vehicle; claim dismissed.
Civil procedure; burden and standard of proof – claimant must prove alleged accident on balance of probabilities; insurance claim repudiation – insurer may rely on independent investigation report; evidence evaluation – failure to call police or third-party witnesses undermines claim.
14 November 2023
Refusal to remove the applicant's name and credentials from company and regulator records constitutes unfair prejudice under s233.
Companies Act s233 – unfair prejudice – refusal to remove former technical director’s name and credentials from company and regulator records; directors’ omission to effect share transfer under articles; remedies: auditor/valuation, buyout, rectification at BRELA/CRB, injunction; minority shareholder protection.
10 November 2023
Court overruled arbitration objection: company meeting disputes statutory and not arbitrable; JVA arbitration clause did not bind the company.
Company law – Court power under Section 137 to order shareholders’ meeting; Arbitrability – whether company meeting disputes are arbitrable; Contracts/JVA – arbitration clause not binding non‑party company; Precedent – Russell v Northern Bank and Beattie cited; Distinguishable authority – Misc. Commercial Cause No. 44/2022 inapplicable
10 November 2023
A bank’s conduct made it bound to an unsigned premium-financing agreement and liable for losses from non-payment.
Insurance — Insurance Premium Finance agreement — acceptance by conduct — unsigned agreement binding where bank acted on it; Insurance law — premium must be paid at inception for cover to be valid (Insurance Act s.137 and Regulation 35); Agency/broker — issuance of cover notes by broker does not validate cover absent premium payment; Evidence — adverse inference where party withholds material communications.
10 November 2023
Applicant failed to show sufficient cause for extension to file bill of costs; application dismissed with costs.
Extension of time – Bill of costs – Whether sufficient cause shown – Corporate management changes and communication failures – Requirement to account for each day of delay.
10 November 2023
The respondents breached the credit facility and are liable to repay the principal and accrued interest, with interest and costs awarded.
Commercial law – Credit facility – enforcement of loan and guarantees – borrower’s duty to repay despite alleged procedural breaches by lender
Evidence – preponderance of probabilities – registration records and investigation reports weight against defendants
Remedies – principal, contractual accrued interest, contractual commercial interest, and judgment interest; general damages denied. Insurer/escrow defenses – insurer’s investigation noted lapses but did not relieve borrowers of repayment obligation
10 November 2023
Insurer unjustifiably delayed/repudiated a fire claim without proving fraud; insured awarded indemnity, damages, interest, and costs; broker cleared.
Insurance law – insurer's duty to indemnify and statutory time for settlement (Insurance Act ss.131,148) – burden of proof on insurer to establish alleged fraud – delay in settlement entitles insured to damages and interest – broker not liable where acting as intermediary.
7 November 2023
Leave to appeal refused where High Court properly exercised discretion in granting extension of time; application dismissed with costs.
Appealability – extension of time orders; interlocutory orders – whether extension orders are non-appealable; Extension of time – good cause, accounting for delay, diligence; Judicial discretion – injudicious/arbitrary exercise and appellate intervention; Leave to appeal – requirement of arguable issues and public importance.
3 November 2023
Commercial debt claim succeeded; court awarded principal, commercial and court interest, general damages and costs.
Commercial law – contract for sale of goods on credit – conduct and bank payments can establish contract – forgery allegations require proof – contractual interest not proved; court awards commercial interest and damages.
3 November 2023
Plaintiff’s loan recovery suit struck out as premature pending appeal; termination constituted default and loan conversion lawful.
Commercial law – staff loan agreement – clause making termination an event of default and permitting conversion to commercial loan. Contract enforcement – conversion of staff loan to commercial loan lawful where agreement provides for it. Procedural law and equity – pending appeal and stay of execution on related labour award render enforcement proceedings premature. Set-off – claim for substantial labour award cannot be determined while related appeal is pending
3 November 2023
SBLC facility dated 26 March 2018 did not take effect; plaintiffs’ earlier debts were cleared and lenders must discharge securities.
Commercial law – banking facilities – standby letter of credit (SBLC) – validity and effect of facility letters; foreign loan registration – Bank of Tanzania correspondence showing anomalies; escrow disbursement used to repay local bank exposures; withholding security after repayment – unlawful; counterclaims based on called SBLC and overdraft dismissed.
3 November 2023
Court adopts parties’ settlement as judgment ordering USD 652,712.74 payment within six months, interest on default, and finality.
Civil procedure – Settlement and compromise – Adoption and registration of deed of settlement under Order XXIII Rule 3 as court judgment
Enforcement – Decretal sum payable by electronic funds transfer within agreed grace period; interest on default
Finality – Settlement judgment extinguishes past, present and future related claims
Costs – Each party to bear its own costs
1 November 2023