20131104 TZHC Dar es Salaam

20131104 TZHC Dar es Salaam

Both NBC and BOT were responsible for the delay in remitting the plaintiff's loan repayments to IFC, but the delay was also partly caused by the plaintiff. The defendant is liable to reimburse the plaintiff half of the penalty interest paid, as the delay was not solely due to the defendant's negligence but also due to prevailing foreign exchange shortages and partial fault of the plaintiff.

Citation
20131104 TZHC Dar es Salaam
Parties
Plaintiff: Highland Soap & Allied Products Ltd; Defendant: Consolidated Holding Corporation; Third Party: Bank of Tanzania (BOT)
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
4 November 2013
Procedural Posture
Civil Case / Judgment
Outcome
Partly allowed
Legal Topics
Loan Repayment, Foreign Exchange Controls, Banking Obligations, Penalty Interest, Delay in Remittance
Source Language
English
Banking Law Contract Law Commercial Law Loan Repayment Foreign Exchange Controls Banking Obligations Penalty Interest Delay in Remittance

Case Brief

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Parties

Highland Soap & Allied Products Ltd

Plaintiff

Consolidated Holding Corporation

Defendant

Bank of Tanzania (BOT)

Third Party

Procedural Posture

Civil Case / Judgment

Legal Issues

  1. 1 Whether the plaintiff deposited any sum of money with NBC for remittance to IFC between 1985 and 1989 and if so how much.
  2. 2 Whether there was any arrangement that the defendant NBC would promptly remit the payment to IFC.
  3. 3 Whether there was any delay in remitting the funds to IFC and if so who was responsible for such delay.

Ratio Decidendi

Both NBC and BOT were responsible for the delay in remitting the plaintiff's loan repayments to IFC, but the delay was also partly caused by the plaintiff. The defendant is liable to reimburse the plaintiff half of the penalty interest paid, as the delay was not solely due to the defendant's negligence but also due to prevailing foreign exchange shortages and partial fault of the plaintiff.

Court Disposition

Partly allowed

Orders

  • Defendant to reimburse plaintiff USD 299,638, being half of the penalty interest paid.
  • No order as to interest on the reimbursed sum.