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.

33 judgments
  • Filters
  • Judges
  • Alphabet
Sort by:
33 judgments
Citation
Judgment date
June 2023
Default judgment granted for unpaid repair invoice after valid service, dishonoured cheques, and no defence; publication conditions imposed.
Commercial law – breach of contract for unpaid motor repair invoice; dishonoured cheques. Civil procedure – default judgment under Rule 22(1) of the High Court (Commercial Division) Procedure Rules; sufficiency of affidavit and annexures (Form No.1)
Service – re-service by court process server and consequences of failure to file defence
Execution – condition precedent to execution under Rule 22(2)(a) and (b): publication in two newspapers and delay before execution
30 June 2023
30 June 2023
The applicant's failure to join the Attorney General does not render the application incompetent; objections dismissed.
Government proceedings — necessity of Attorney General as party — s6A(1) Cap.5 R.E.2019; Intervention by Attorney General — right to be joined or to take over proceedings instituted by/against local government authorities; Preliminary objections — objection based on mixed law and fact not suitable at preliminary stage (Mukisa principle); Appeal specification — whether appeal is against order or final decree is factual and to be determined on merits.
30 June 2023
Court records mediated settlement as consent judgment ordering plaintiff to pay TZS 17bn under specified schedule and costs to be borne by each party.
Commercial law – Settlement by mediation – Consent judgment recorded as court decree; agreed repayment schedule and interest rate enforceable as judgment. Debt repayment – Structured payment plan – initial lump sum followed by five annual installments at 5% interest
Costs – parties to bear their own costs under consent judgment
30 June 2023
Failure to comply with a court discovery order warranted dismissal of the plaintiff's suit under Order XI Rule 18 CPC.
Civil procedure – discovery orders – duty to comply with court orders – custodianship of records (BRELA, TRA) and police loss report relevance Civil procedure – dismissal for want of prosecution – Order XI Rule 18 CPC – effect of plaintiff's non-compliance with discovery order Overriding objective – cannot be used to circumvent mandatory procedural requirements that go to the root of the matter Sanctions for non-compliance – dismissal and potential adverse inference
30 June 2023
Applicant entitled to unpaid transport fees; respondent breached MoUs and must pay with interest; counterclaim dismissed.
Contract law – Memoranda of Understanding – obligation to pay within 30 days upon provision of original invoice and PODs – breach by withholding payment
Evidence – production of PODs and invoices; effect of third‑party stamping and failure to cross‑examine. Insurance law – Goods in Transit (GIT) – scope of required cover; hijacking risk not contractually imposed on transporter; party with insurable interest to initiate claim
Remedies – decretal sum, commercial and post-judgment interest, costs; dismissal of counterclaim for lost cargo
30 June 2023
Applicant proved respondent’s breach of loan agreements; court awarded outstanding sums, reduced interest to 10%, and authorised mortgage sale.
Commercial law – mortgage and personal loan defaults; evidence and computation of outstanding loan balances; bank accounting 'write off' does not discharge debtor; contractual interest rates and court's discretion to award fair pre- and post-judgment interest; enforcement via auction of mortgaged property.
30 June 2023
30 June 2023
An affidavit containing legal arguments renders the supporting application incompetent and it was struck out with costs.
Affidavit law – Affidavits must not contain legal arguments, prayers or conclusions – Offending paragraphs may be expunged where inconsequential – Where expungement leaves no substantive affidavit, the supporting application is incompetent and liable to be struck out – Costs awarded.
30 June 2023
Applicant failed to prove interest or possession in property attached in execution; application dismissed with costs.
Civil Procedure — Order XXI — Attachment in execution — Applicant seeking to lift attachment must prove interest or possession at time of attachment; land search and surveyor's identification can establish correct identification of attached property; failure to rebut search/survey evidence results in dismissal.
27 June 2023
Applicant shown prima facie defence on whether installation formed part of consideration; leave to defend under summary procedure granted.
Civil procedure — Summary procedure — Leave to appear and defend under Order XXV/XXXV Rule 3(1) CPC — Requirement to disclose facts showing holder must prove consideration and existence of a prima facie defence. Commercial law — Promissory notes — Defence arising from alleged non-performance of contractual installation obligations. Triable issue — Whether installation formed part of contractual consideration requiring plenary hearing
23 June 2023
Court recorded parties' deed of settlement as consent judgment after finding it met Order XXIII Rule 3 requirements.
Civil Procedure — Consent judgment — Deed of Settlement — Order XXIII Rule 3 Civil Procedure Code — Recording settlement as judgment — Suit marked compromised.
23 June 2023
Preliminary objections on cause of action and locus standi overruled; court may examine pleadings and annexures.
Civil procedure – preliminary objections – cause of action and locus standi; court may inspect plaint and annexures when ruling on preliminary objections; where pleadings disclose mixed or disputed factual nexus, further evidence may be required to determine contractual privity.
23 June 2023
Company contractor found liable for breach of construction contracts; individual employees/directors not personally liable.
Commercial law – Construction contracts – Breach by contractor – Evidence: contracts, receipts and bank transfers; corporate personality – company distinct from directors/employees; default judgment following strike-out of defence; damages, interest and costs.
23 June 2023
Court lifted corporate veil and ordered directors’ committal after judgment debtor defaulted despite declaring means to pay.
Execution – Lifting corporate veil – Order XXI Rules 9, 35 and Rule 39(2)(d) – Directors’ committal as civil prisoners for judgment debtor’s default. Burden of proof – Adequacy satisfied by debtor’s own commitment (deed of compromise) indicating means to pay. Concealment/transfer of assets not strictly required where Rule 39(2) circumstances are proved
21 June 2023
Leave to appeal refused because the supporting affidavit failed to disclose substantive grounds for appeal.
Civil procedure — Leave to appeal — Applicant must show good reasons, arguable case or novel point of law for Court of Appeal consideration; grounds for appeal must be disclosed in supporting affidavit — Submissions cannot substitute for affidavit. Civil Procedure Code, Order XXIII Rule 1(2)(a) — requirements when seeking withdrawal of suit with leave to refile
19 June 2023
Plaintiff proved breach of a vehicle sale agreement and was awarded unpaid balance, interest, damages and costs.
Contract law – sale and purchase – breach for non-payment – entitlement to unpaid purchase price; Evidence – HCCD Rule 56 – striking out absent witness statements and weight of unsworn testimony; Remedies – contractual and court-ordered interest, general damages and costs.
16 June 2023
Utilisation and discounting of an LC before shipment on non‑compliant documents breached the LC and UCP 600.
Banking law – Letters of Credit – compliance with documentary requirements under LC fields 46A and 47A(8) and UCP 600; premature utilisation before arrival/maturity breaches LC. Reimbursement authorisations – revocability where presentation is non‑compliant
Remedies – declaration of breach, cancellation of reimbursement authorisation, repayment of charges, damages and interest
16 June 2023
Extension of time refused where alleged illegality and incapacity at settlement were unproven and delay unexplained.
Application for extension of time – consent judgment – alleged illegality in execution of settlement deed – incapacity due to illness – requirement that illegality be apparent on the face of the record (Valambia; Lyamuya). Proof required to vitiate consent – unsoundness of mind, duress, undue influence, forgery – must be supported by evidence
Delay – need to account for each day of delay when seeking extension of time
14 June 2023
14 June 2023
12 June 2023
An undertaking may secure a stay, but the respondent must furnish an enforceable bank guarantee from a reputable bank as security.
Civil procedure – Stay of execution – Condition to furnish security for due performance of decree – Distinction between an undertaking and enforceable security; bank guarantee from reputable bank ordered
Security – Form and enforceability – Undertakings may secure a stay but actual security (e.g., bank guarantee) required to protect decree-holder
Precedents – Reliance on authorities on firm undertakings and requirement for third-party bank guarantees
12 June 2023
Applicants failed to satisfy Atilio requirements for a temporary injunction; application dismissed with costs.
Civil procedure – temporary injunction – Atilio v Mbowe test: prima facie case, irreparable harm, balance of convenience. Banking law – secured loans and mortgages – bank’s right to recover on default and enforce securities. Irreparable injury – monetary compensation may be adequate remedy where loss is compensable by damages. Balance of convenience – protection of bank’s interest in loan recovery where customer default is undisputed
9 June 2023
Extension of time granted where defective certificate of delay by court officer and applicant acted diligently.
Civil procedure – Extension of time – Sufficient cause – Defective certificate of delay issued by court officer – Applicant’s diligence – Withdrawal of appeal – Accounting for delay.
9 June 2023
Court upheld instruction fee award but struck out improperly claimed TZS1,000,000 for attending taxation; each party to bear own costs.
Advocates Remuneration Order – taxation of bill of costs – award of instruction fees – discretionary evaluation by taxing officer; requirement of receipts/vouchers – production within taxing officer’s discretion; Order 55(3) – fees for attending taxation to be left blank and not claimed in body of bill – unlawful separate award struck out.
9 June 2023
Arbitration clause in shareholders/JVA ousts court jurisdiction; application struck out and respondents awarded costs.
Commercial law – arbitration clause – jurisdiction – dispute resolution clause in Joint Venture/Shareholders' Agreement requiring ICC arbitration in Paris – sanctity of contract – preliminary objection sustained – suit struck out for want of jurisdiction.
9 June 2023
Default judgment entered for plaintiff for breach of transport contract; damages awarded and publication condition imposed before execution.
Commercial law – Contract – Transportation agreement – breach by failure to deliver consignments and failure to refund advanced payments. Civil procedure – Default judgment – substituted service by publication – Rule 22(1) High Court (Commercial Division) Procedure Rules 2012 (as amended)
Remedies – Damages and costs; publication requirement before execution under Rule 22(2)
9 June 2023
6 June 2023
5 June 2023
Default judgment granted after valid substituted service and proof of loan, guarantees, and defendants’ failure to defend.
Commercial law – Loan facilities and security – Default judgment under Rule 22(1) – Substituted service by publication – Proof by affidavit and annexures – Entitlement to principal, contractual and decretal interest, general damages and costs.
2 June 2023
Application to restrain leasing and seek committal over attached property dismissed for wrong forum under section 38 CPC.
Civil Procedure – Execution – Section 38(1) CPC – Questions relating to execution, discharge or satisfaction of a decree to be determined by the executing court and not by a separate suit. Execution law – Attached property – A purchaser/lessee of attached property is the judgment-debtor’s representative and bound by the decree as to the interest transferred. Contempt of court – High threshold for committal; conduct consisting only of intention or call for expressions of interest may be insufficient
Procedure – Separation of execution remedies from separate civil or criminal proceedings; proper forum required
2 June 2023
Court lifted the corporate veil and held company directors liable for unpaid instalments under a consent decree.
Civil procedure – lifting/piercing corporate veil – requirements to show sham, fraud or concealment of assets to hold directors liable
Execution – enforcement of consent judgment/settlement where instalments unpaid
Evidence – affidavit as evidence and balance of probabilities standard in civil claims
2 June 2023
Plaintiff proved breach of dealership agreement; defendant ordered to pay outstanding price with interest and costs.
Commercial contract – dealership agreement – breach by non-payment – invoices and dishonoured cheques as proof – signatures and document comparison – admissibility/weight of unwitnessed statement under Rule 56(3) – specific (loss of profit) damages require strict proof – interest awarded (commercial and court rates) and costs.
2 June 2023