as noremco vs dar es salaam water and sewage authority dawasa 2011 tzhccomd 2042 7 october 2011

as noremco vs dar es salaam water and sewage authority dawasa 2011 tzhccomd 2042 7 october 2011

The obligation to pay for works already executed under the Water Meter Installation Contract survived the mutual termination of that contract and was assignable to DAWASA under clause 56.5 of the lease agreement. DAWASA, having received the benefit of the installed water meters, is bound to pay the amount awarded by the adjudicator, even though it was not a party to the adjudication proceedings.

Citation
as noremco vs dar es salaam water and sewage authority dawasa 2011 tzhccomd 2042 7 october 2011
Parties
Plaintiff: A/S Noremco; Defendant: Dar Es Salaam Water and Sewage Authority (DAWASA)
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
7 October 2011
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff.
Legal Topics
Assignment of Contracts, Obligations Surviving Termination, Adjudicator's Award Enforcement, Interest on Judgment Debts
Source Language
English
Contract Law Commercial Law Assignment of Contracts Obligations Surviving Termination Adjudicator's Award Enforcement Interest on Judgment Debts

Case Brief

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Parties

A/S Noremco

Plaintiff

Dar Es Salaam Water and Sewage Authority (DAWASA)

Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether any contract/agreement or obligation was assignable by City Water to the defendant upon termination of the lease agreement.
  2. 2 Whether the contract/agreement or obligations between City Water and the plaintiff were assigned to the defendant upon termination of the lease agreement.
  3. 3 Whether the adjudication decision dated 19th December 2006 is binding on the defendant by virtue of the lease agreement between the defendant and City Water.

Ratio Decidendi

The obligation to pay for works already executed under the Water Meter Installation Contract survived the mutual termination of that contract and was assignable to DAWASA under clause 56.5 of the lease agreement. DAWASA, having received the benefit of the installed water meters, is bound to pay the amount awarded by the adjudicator, even though it was not a party to the adjudication proceedings.

Court Disposition

Judgment for the plaintiff.

Orders

  • Defendant to pay plaintiff USD 237,129.69 as awarded by the adjudicator.
  • Interest on the decreed amount at 7% per annum from the date of judgment to the date of full payment.