air tanzania company ltd vs ultimate security tanzania ltd 2012 tzhc 49 28 november 2012

air tanzania company ltd vs ultimate security tanzania ltd 2012 tzhc 49 28 november 2012

The contract between the parties is silent on the application of compound interest; therefore, simple interest should apply in calculating the decretal sum. The application to lift the Garnishee Order Nisi fails, but the sum to be garnished is corrected to TZS 1,383,638,655.34 or USD 890,372.36 instead of the higher amount previously stipulated.

Citation
air tanzania company ltd vs ultimate security tanzania ltd 2012 tzhc 49 28 november 2012
Parties
Applicant/judgment Debtor: AIR TANZANIA COMPANY LTD; Respondent/decree Holder: ULTIMATE SECURITY TANZANIA LTD
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
28 November 2012
Procedural Posture
Commercial Case / Ruling on Application to Lift Garnishee Order Nisi and Recalculate Decretal Sum
Outcome
Application dismissed with qualification
Legal Topics
Garnishee Proceedings, Interest Calculation, Execution of Decrees, Company Liability
Source Language
English
Civil Procedure Commercial Law Garnishee Proceedings Interest Calculation Execution of Decrees Company Liability

Case Brief

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Parties

AIR TANZANIA COMPANY LTD

Applicant/judgment Debtor

ULTIMATE SECURITY TANZANIA LTD

Respondent/decree Holder

Procedural Posture

Commercial Case / Ruling on Application to Lift Garnishee Order Nisi and Recalculate Decretal Sum

Legal Issues

  1. 1 Whether the Garnishee Order Nisi should be lifted
  2. 2 Whether the decretal sum was wrongly calculated using compound interest instead of simple interest
  3. 3 Whether the Government as sole shareholder can be ordered to pay the decretal sum

Ratio Decidendi

The contract between the parties is silent on the application of compound interest; therefore, simple interest should apply in calculating the decretal sum. The application to lift the Garnishee Order Nisi fails, but the sum to be garnished is corrected to TZS 1,383,638,655.34 or USD 890,372.36 instead of the higher amount previously stipulated.

Court Disposition

Application dismissed with qualification

Orders

  • Application dismissed
  • Sum to be garnished is TZS 1,383,638,655.34 or USD 890,372.36 instead of USD 999,237.14