diamond trust bank tanzania limited vs gas transport ltd 4 others 2022 tzhccomd 100 25 april 2022

IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION) AT DAR ES SALAAM COMMERCIAL CASE NO. 69 OF 2020 BETWEEN DIAMOND TRUST BANK TANZANIA LIMITED............ PLAINTIFF AND G&S TRANSPORT LIMITED........................................................ 1stDEFENDAN RIAZ GULAMABBAS GANGJI (as the administrator of the estate of the late GULAMABBAS RAJABALI GANGJI).................................................................... 2ndDEFENDANT ASMA GULAMABBAS GANGJI....................................................3rdDEFENDANT MOHAMMED AHMED MOHAMED............................................... 4thDEFENDANT RIAZ G. GANGJI t/a ABBAS EMPORIUM.............. 5th DEFENDANT Date of last order: 25th April, 2022 Date of Judgment: 25th April, 2022 CONSENT JUDGMENT MKEHA, J. The plaintiff had filed this suit praying for judgment and decree against the defendants as hereunder: (i) Declaration that the 1st defendant is in breach of the Credit facility agreement and consequently the 2nd, 3rd, 4th and 5th defendants are as well in breach of the contract as guarantors; i (ii) Judgment in favour of the plaintiff against 1st 2nd 3rd 4th and 5th defendants for the payments of TZS 1, 220,618,068.56 (Tanzania Shillings One Billion Two Hundred Twenty Million Six Hundred Eighteen Thousand and Sixty- Eight and Fifty- Six Cents) being outstanding amount in the credit facility respectively as of 31st May 2020; (iii) Interest at an agreed commercial rate on the outstanding amount stated above from the date of filing of the suit to the date of judgment; (iv) Interest on the decretal sum at the court rate of 12% from the date of judgment to the date of full satisfaction; (v) General damages to be assessed by this Honourable court; (vi) The defendants jointly and severally be ordered to pay the costs of this suit and (vii) Any other relief as the court may find convenient and equitable to grant. When this suit was about being heard, but before the commencement of actual hearing, the parties herein executed a deed of settlement to end their dispute. The same was afterwards filed in court pursuant to Order XXIII Rule 3 of the Civil Procedure Code. On this 25th day of April 2022, the parties' advocates (Mr. Kimaro for the plaintiff and Ms. Karoli for the 2 defendants) have appeared before me asking the court to record the said settlement as decree binding upon the parties. Having satisfied myself that the settlement conforms with the requirements of the law under Order XXIII Rule 3 of the Civil Procedure Code, the same really being the agreement by the parties for the compromise, not resulting from fraud or misrepresentation and deducing from the deed of settlement signed and filed by the parties herein court, I proceed to enter a consent judgment and pass a consent decree in favour of the plaintiff in the following terms: (i) By consent of the parties, the outstanding amount payable to the plaintiff by the defendants in the loan facility issued to the 1st defendant, shall be the restructured amount of TZS. 1, 141,775,416.04 (Tanzania shillings One Billion, One Hundred Forty-One Million Seven Hundred Seventy-Five Thousand Four Hundred Sixteen and Four Cents). The same shall be payable at an interest rate of sixteen -point five percent (16.5%) at monthly instalments of TZS 19, 483,518, 1.5 (Tanzania Shillings Nineteen Million Four Hundred Eighty -Three Thousand Five Hundred Eighteen and Fifteen Cents) for the term of ten (10) years effective from June 2022. 3 (ii) By the consent of the parties, the accrued and unpaid interest since when the facilities fell into default in the year 2019 are waived. (iii) Should the defendants default to pay any of the instalments as per paragraph (i) above, the plaintiff shall issue thirty (30) days' final notice after the expiry of which the plaintiff, shall proceed to auction the securities to recover the whole outstanding amount at the time of default including accrued penalty interest and charges thereon. Court: Delivered in the presence of Mr. Kimaro learned advocate for the plaintiff and Ms. Karoli learned advocate for the defendants 4