20140606 TZHC Moshi

20140606 TZHC Moshi

The purchaser (plaintiff) did not assume the liabilities of the previous owner; the responsibility to settle the outstanding electricity bill rests with the liquidator (second defendant). TANESCO is not obliged to reconnect electricity until the outstanding debt is paid. The plaintiffs' claim for general damages is denied as they failed to conduct due diligence before purchase.

Citation
20140606 TZHC Moshi
Parties
Plaintiff: AMB. Anthony Nyaki; Plaintiff: Imara Daima Company Ltd; Defendant: TANESCO; Defendant: Consolidated Holding Corporation
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
6 June 2014
Procedural Posture
Civil / Judgment
Outcome
suit partly fails and partly succeeds
Legal Topics
Liability for Utility Debts, Asset Purchase and Liabilities, Liquidation Proceedings, Connection of Electricity Supply
Source Language
English
Contract Law Commercial Law Liability for Utility Debts Asset Purchase and Liabilities Liquidation Proceedings Connection of Electricity Supply

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Parties

AMB. Anthony Nyaki

Plaintiff

Imara Daima Company Ltd

Plaintiff

TANESCO

Defendant

Consolidated Holding Corporation

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the 1st plaintiff purchased assets of Imara Wood Products Company Ltd
  2. 2 Whether the plaintiffs took over the liabilities of Imara Wood Products Company Ltd
  3. 3 Whether the 1st defendant submitted its claims to the liquidator of Imara Wood Products Company Ltd

Ratio Decidendi

The purchaser (plaintiff) did not assume the liabilities of the previous owner; the responsibility to settle the outstanding electricity bill rests with the liquidator (second defendant). TANESCO is not obliged to reconnect electricity until the outstanding debt is paid. The plaintiffs' claim for general damages is denied as they failed to conduct due diligence before purchase.

Court Disposition

suit partly fails and partly succeeds

Orders

  • Second defendant (Consolidated Holding Corporation) is ordered to clear the outstanding electricity debt with the first defendant (TANESCO) as soon as possible to enable reconnection of electricity to the plaintiffs' premises.
  • Plaintiffs' claim for general damages is refused.