east african cables t limited cs spencon services limited 2016 tzhccomd 2077 1 july 2016

east african cables t limited cs spencon services limited 2016 tzhccomd 2077 1 july 2016

The applicant's affidavit evidence that the respondent is about to wind up business in Tanzania, lacks unencumbered assets within the jurisdiction, and is disposing of receivables outside the jurisdiction was not specifically controverted by the respondent's counter-affidavit. Therefore, there is prima facie...

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Citation
east african cables t limited cs spencon services limited 2016 tzhccomd 2077 1 july 2016
Parties
Applicant: East African Cables (T) Limited; Respondent: Spencon Services Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
1 July 2016
Procedural Posture
Miscellaneous Application (attachment Before Judgment) / Ruling on Interim Application
Outcome
Application allowed to the extent explained in the ruling.
Legal Topics
Attachment Before Judgment, Security for Satisfaction of Decree, Third Party Interests in Receivables
Source Language
english
Civil Procedure Commercial Law Attachment Before Judgment Security for Satisfaction of Decree Third Party Interests in Receivables

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Parties

East African Cables (T) Limited

Applicant

Spencon Services Limited

Respondent

Procedural Posture

Miscellaneous Application (attachment Before Judgment) / Ruling on Interim Application

Legal Issues

  1. 1 Whether the applicant has established grounds for attachment before judgment under Order XXXVI Rule 6 of the Civil Procedure Code
  2. 2 Whether the receivables sought to be attached are subject to third party interests that bar attachment

Ratio Decidendi

The applicant's affidavit evidence that the respondent is about to wind up business in Tanzania, lacks unencumbered assets within the jurisdiction, and is disposing of receivables outside the jurisdiction was not specifically controverted by the respondent's counter-affidavit. Therefore, there is prima facie evidence justifying attachment before judgment under Order XXXVI Rule 6. The alleged third party interest (Standard Chartered Bank Uganda) was not established as affecting the specific receivables in question, and the parties to the loan agreement are distinct legal entities.

Court Disposition

Application allowed to the extent explained in the ruling.

Orders

  • Tshs 1,351,854,816.00 due to the respondent from Rural Electricity Authority (REA) or any other receivable to the respondent not exceeding that amount to be attached before judgment unless the respondent furnishes security equal to the claimed amount within two weeks from the date of the order.