bharya engineering contracting co ltd vs the arab contractors ta ac ee jointventure 2022 tzhccomd 11 6 january 2022

bharya engineering contracting co ltd vs the arab contractors ta ac ee jointventure 2022 tzhccomd 11 6 january 2022

The court held that consolidation of the two applications was logical due to overlapping subject matter and developments in arbitration. Since the guarantees involved a third-party bank not privy to the arbitration, and to do justice to all parties, the court stayed the consolidated application and ordered maintenance of status quo pending arbitral proceedings.

Citation
bharya engineering contracting co ltd vs the arab contractors ta ac ee jointventure 2022 tzhccomd 11 6 january 2022
Parties
Applicant: Bharya Engineering & Contracting Company Limited; 1st Respondent: Elsewedy Electric T/A AC Jointventure; 3rd Respondent: Stanbic Bank Tanzania Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
6 January 2022
Procedural Posture
Miscellaneous Commercial Application (consolidated Nos. 57 & 172 of 2021) / Ruling on Consolidation, Stay, and Interim Orders Pending Arbitration
Outcome
Applications consolidated and stayed; status quo to be maintained; no order as to costs.
Legal Topics
Interim Injunctions, Bank Guarantees, Arbitration Stay, Consolidation of Applications
Source Language
English
Commercial Law Arbitration Interim Injunctions Bank Guarantees Arbitration Stay Consolidation of Applications

Case Brief

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Parties

Bharya Engineering & Contracting Company Limited

Applicant

Elsewedy Electric T/A AC Jointventure

1st Respondent

Stanbic Bank Tanzania Limited

3rd Respondent

Procedural Posture

Miscellaneous Commercial Application (consolidated Nos. 57 & 172 of 2021) / Ruling on Consolidation, Stay, and Interim Orders Pending Arbitration

Legal Issues

  1. 1 Whether to consolidate Misc. Commercial Applications No. 57 and 172 of 2021
  2. 2 Whether to stay proceedings and maintain status quo pending arbitration
  3. 3 Whether the court or arbitrator has jurisdiction over bank and performance guarantees involving a third-party bank

Ratio Decidendi

The court held that consolidation of the two applications was logical due to overlapping subject matter and developments in arbitration. Since the guarantees involved a third-party bank not privy to the arbitration, and to do justice to all parties, the court stayed the consolidated application and ordered maintenance of status quo pending arbitral proceedings.

Court Disposition

Applications consolidated and stayed; status quo to be maintained; no order as to costs.

Orders

  • Misc. Commercial Applications No. 57 and 172 of 2021 consolidated.
  • Consolidated application stayed pending arbitration.