equity bank t ltd vs dar lux co ltd 3 others by way of counter claim dar lux co ltd vs equity bank t ltd another 2023 tzhccomd 324 11 september 2023

equity bank t ltd vs dar lux co ltd 3 others by way of counter claim dar lux co ltd vs equity bank t ltd another 2023 tzhccomd 324 11 september 2023

A counter claim instituted by a company without a board resolution is incompetent before the court and must be struck out.

Citation
equity bank t ltd vs dar lux co ltd 3 others by way of counter claim dar lux co ltd vs equity bank t ltd another 2023 tzhccomd 324 11 september 2023
Parties
Plaintiff (main Suit), 1st Defendant (counter Claim): Equity Bank Tanzania Limited; 1st Defendant (main Suit), Plaintiff (counter Claim): Dar Lux Company Limited; 2nd Defendant (main Suit): Simagunga General Trading Company Limited; 3rd Defendant (main Suit): Donald Xavery Simagunga; 4th Defendant (main Suit): Pendo Donald Xavery; 2nd Defendant (counter Claim): NISK Capital Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
11 September 2023
Procedural Posture
Commercial Case / Ruling on Preliminary Objection to Counter Claim
Outcome
Counter claim struck out for incompetence due to lack of board resolution.
Legal Topics
Board Resolution Requirement, Competence of Suit by Company, Counter Claim Procedure
Source Language
English
Company Law Civil Procedure Board Resolution Requirement Competence of Suit by Company Counter Claim Procedure

Case Brief

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Parties

Equity Bank Tanzania Limited

Plaintiff (main Suit), 1st Defendant (counter Claim)

Dar Lux Company Limited

1st Defendant (main Suit), Plaintiff (counter Claim)

Simagunga General Trading Company Limited

2nd Defendant (main Suit)

Donald Xavery Simagunga

3rd Defendant (main Suit)

Pendo Donald Xavery

4th Defendant (main Suit)

NISK Capital Limited

2nd Defendant (counter Claim)

Procedural Posture

Commercial Case / Ruling on Preliminary Objection to Counter Claim

Legal Issues

  1. 1 Whether a counter claim instituted by a company without a board resolution is incompetent

Ratio Decidendi

A counter claim instituted by a company without a board resolution is incompetent before the court and must be struck out.

Court Disposition

Counter claim struck out for incompetence due to lack of board resolution.

Orders

  • Counter claim is struck out.
  • Each party to bear its own costs.