20050224 TZCA Dar es Salaam

20050224 TZCA Dar es Salaam

The 1st Respondent was not privy to the contracts or letters of guarantee with the appellant and therefore had no cause of action for breach of contract. Additionally, the suit was instituted outside the statutory limitation period and was time barred. The plaint should have been rejected and the suit dismissed.

Citation
20050224 TZCA Dar es Salaam
Parties
Appellant: Consolidated Holding Corporation; 1st Respondent: Rajani Industries Limited; 2nd Respondent: Bank of Tanzania
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
24 February 2005
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Decree
Outcome
Appeal allowed; High Court judgment and proceedings set aside; suit dismissed as time barred and disclosing no cause of action.
Legal Topics
Privity of Contract, Limitation Periods, Cause of Action, Preliminary Objection, Bank Guarantees
Source Language
English
Contract Law Civil Procedure Limitation of Actions Privity of Contract Limitation Periods Cause of Action Preliminary Objection Bank Guarantees

Case Brief

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Parties

Consolidated Holding Corporation

Appellant

Rajani Industries Limited

1st Respondent

Bank of Tanzania

2nd Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Decree

Legal Issues

  1. 1 Whether the 1st Respondent had a cause of action against the appellant for breach of contract
  2. 2 Whether the suit was time barred under the Law of Limitation Act, 1971

Ratio Decidendi

The 1st Respondent was not privy to the contracts or letters of guarantee with the appellant and therefore had no cause of action for breach of contract. Additionally, the suit was instituted outside the statutory limitation period and was time barred. The plaint should have been rejected and the suit dismissed.

Court Disposition

Appeal allowed; High Court judgment and proceedings set aside; suit dismissed as time barred and disclosing no cause of action.

Orders

  • High Court judgment and decree set aside
  • Suit dismissed under Order VII Rule 11(a) of the Civil Procedure Code, 1966