andrew antony sindabaha vs akiba commercial bank another 2023 tzhclandd 16841 28 august 2023

A counter claim instituted by a company without a board resolution authorizing the suit is fatally defective and must be struck out for want of compliance with section 147(1) of the Companies Act.

Citation: andrew antony sindabaha vs akiba commercial bank another 2023 tzhclandd 16841 28 august 2023
Parties: Plaintiff: Andrew Antony Sindabaha; 1st Defendant: Akiba Commercial Bank; 2nd Defendant: Majembe Auction Mart
Court: TANZLII
Jurisdiction: Tanzania
Judgment Date: 28 August 2023
Procedural Posture: Land Case / Ruling on Preliminary Objection to Counter Claim
Outcome: Counter claim struck out with costs for want of board of directors' authorization to sue.
Legal Topics: Board Resolution Requirement, Counter Claim Procedure, Company Authorization to Sue
Source Language: English

Company Law Civil Procedure Board Resolution Requirement Counter Claim Procedure Company Authorization to Sue

Case Brief

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Parties

Andrew Antony Sindabaha

Plaintiff

Akiba Commercial Bank

1st Defendant

Majembe Auction Mart

2nd Defendant

Procedural Posture

Land Case / Ruling on Preliminary Objection to Counter Claim

Legal Issues

1 Whether a counter claim by a company must be accompanied by a board resolution under section 147(1) of the Companies Act
2 Whether failure to plead board resolution is fatal to the counter claim

Ratio Decidendi

A counter claim instituted by a company without a board resolution authorizing the suit is fatally defective and must be struck out for want of compliance with section 147(1) of the Companies Act.

Court Disposition

Counter claim struck out with costs for want of board of directors' authorization to sue.

Orders

The entire counter claim is struck out with costs.