crdb bank limited vs issack b mwamasika others 2017 tzca 159 14 july 2017

crdb bank limited vs issack b mwamasika others 2017 tzca 159 14 july 2017

A self-issued bank guarantee by the judgment debtor does not provide adequate security for the due performance of the decree, as it fails to protect the decree-holder's interests independently. Therefore, a stay of execution is granted only on condition that the applicant furnishes a bank guarantee from a reputable bank or syndicate of banks other than itself within the specified period.

Citation
crdb bank limited vs issack b mwamasika others 2017 tzca 159 14 july 2017
Parties
Applicant: CRDB Bank Limited; 1st Respondent: Issack B. Mwamasika; 2nd Respondent: Registered Trustees of Dar es Salaam International School Trust Fund; 3rd Respondent: EDBP & GD Construction Co. Ltd
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
14 July 2017
Procedural Posture
Civil Application / Ruling on Application for Stay of Execution Pending Appeal
Outcome
Application partly allowed
Legal Topics
Stay of Execution, Bank Guarantee, Security for Decree, Adjournment, Appeals
Source Language
English
Civil Procedure Banking Law Stay of Execution Bank Guarantee Security for Decree Adjournment Appeals

Case Brief

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Parties

CRDB Bank Limited

Applicant

Issack B. Mwamasika

1st Respondent

Registered Trustees of Dar es Salaam International School Trust Fund

2nd Respondent

EDBP & GD Construction Co. Ltd

3rd Respondent

Procedural Posture

Civil Application / Ruling on Application for Stay of Execution Pending Appeal

Legal Issues

  1. 1 Whether the applicant is entitled to a stay of execution of the High Court decree pending appeal
  2. 2 Whether a self-issued bank guarantee by the judgment debtor (applicant) is adequate security for the due performance of the decree
  3. 3 Whether the applicant showed good cause for adjournment to file a supplementary affidavit

Ratio Decidendi

A self-issued bank guarantee by the judgment debtor does not provide adequate security for the due performance of the decree, as it fails to protect the decree-holder's interests independently. Therefore, a stay of execution is granted only on condition that the applicant furnishes a bank guarantee from a reputable bank or syndicate of banks other than itself within the specified period.

Court Disposition

Application partly allowed

Orders

  • Stay of execution of the High Court decree granted pending appeal, conditional upon the applicant depositing a bank guarantee from a reputable bank or syndicate of reputable banks, other than itself, in a convertible sum equivalent to USD 42,997,298.00 within 21 days from the date of the ruling.