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Tanzania Judgment

TZHCCOMD

usangu genera traders vs kagera t company 2018 tzhccomd 96 16 july 2018

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Professional case brief

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Source document

01

Holding and result

Payments claimed to have been made to Advocate Masaka were not sufficiently proved as vouchers lacked official stamp and receipts; execution proceedings allowed to continue.

Court disposition

Execution allowed to proceed

Orders

  • Attachment and sale of house on Plot No. 334 and 335, Kilima Bugabo unless Tshs 31,000,000 is paid

02

Material facts

Parties

Usangu General Traders Limited

Plaintiff/applicant

Kagera Tea Company

Defendant/respondent Counsel: Tito Lwira

Amounts and remedies

  • Outstanding Balance: TZS 31,000,000
  • Original Decree Amount: TZS 119,824,263
  • Taxed Bill of Costs: TZS 30,428,297

03

Procedural history

  1. Posture

    Commercial Case / Execution Proceedings

04

Questions and positions

Legal issues

Party arguments

Applicant
Initially claimed entire decree not satisfied and sought continuation of execution; later acknowledged partial payment direct to client and disputed payments allegedly made to former advocate Masaka.
Respondent
Claimed payment of Tshs 31,000,000 to deceased advocate Masaka and inability to pay balance due to advocate's demise; produced petty cash vouchers as evidence.

05

Court’s reasoning

  1. 01

    general legal principle

    Payment to a party's advocate may constitute payment to the party under principal-agent relationship.

06

Ratio, limits and disposition

Ratio decidendi

Payments claimed to have been made to Advocate Masaka were not sufficiently proved as vouchers lacked official stamp and receipts; execution proceedings allowed to continue.

Court disposition

Execution allowed to proceed

  • Attachment and sale of house on Plot No. 334 and 335, Kilima Bugabo unless Tshs 31,000,000 is paid

Source and reliance status

TZHCCOMD · 16 July 2018

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Judgment text

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Source document

TZHCCOMD

Judgment· 16 July 2018

usangu genera traders vs kagera t company 2018 tzhccomd 96 16 july 2018

IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION) AT DAR-ES-SALAA M. COMMERCIAL CASE NO. 55 OF 2005 USANGU GENERAL TRA DERS PLAINTIFF/ APPLICANT

VERSUS KAGERA TEA COMPANY DEFENDANT /RESPONDENT

RULING MRUMA, J: It is said that the travails of Decree holder commence after he has obtained a decree in his favour. This case is no different. The case spans a period of over twelve years after the passing of the decree in favour of the Decree holder. In order to appreciate the contentions following brief facts are required to be noticed. Usangu General Traders Limited a limited liability Private Company instituted a suit against the present Judgment Debtor Kagera Tea Company, another private Company claiming for payment of Tshs 427,375,753.49 being the outstanding balance on the account for loan agreement which Usangu 'had granted to Kagera. After full trial, this court 1 (Kimaro J as she then was) passed a degree in favour of the Decree holder for Tshs 119,824,263.00. The decree was passed on 27/4/2006. On 28/9/2006, the Decree holder filed an application for execution of that decree and that is when the Decree holder's travails were commenced. It appears that the decree was satisfied. Thereafter the Decree Holder obtained an order for payment of Tshs 30,428,297.00 being her bill of costs as taxed by the Taxing Officer on 3/7/2014. These proceedings are related to the decree arising from the said bill of costs. Counsel for the Judgment debtor claimed that the Judgment debtor paid Tshs 31,000,000/= to the Decree Holder's former Advocate one Mr. Masaka (now deceased) and that

the balance of Tshs 5,798,297.00 could not be paid following Mr. Masaka's demise. At first counsel for the Decree Holder Claimed that the entire Decree had not been satisfied therefore the proceedings for execution should continue as prayed. While the matter was still pending, the learned counsel for the Decree Holder (probably after being served with some documents exhibiting payments to his client) took a stand that out of Tshs 36,798,297.00 due, Tshs 5,799,300.00 had been paid direct to his client. He disputed payments allegedly made to former Advocate Masaka. At the hearing Counsel Tito Lwira, who represents the Judgment debtor produced in evidence copies of Petty Cash Voucher, exhibiting payments to the late Masaka. 2 I have carefully looked at these Photostat copies of Petty Cash Vouchers which shows that Tshs 31,000,000.00 were paid to Advocate Masaka Mr. Thomas as being payments of bill of costs for Usangu General Traders. While I do agree that payment to a party's Advocate could constitute payment to the party herself under the Principle of Principal/Agent relationship but payments which are claimed to have been made to Advocate Masaka M. Thomas had not been proved. Copies of the Petty Cash Voucher produced as exhibit do not bear the official stamp of Advocate Masaka and they are not accompanied by any receipt to prove that they were actually received by Masaka. Although they are signed but this court does not know the signature of Advocate Masaka. In the circumstance, I allow the execution to proceed and as the outstanding balance is not big, I order that only a house on Plot No. 334 and 335, Kilima Bugabo be attached and sold in execution of the decree unless sooner the decretal sum of Tshs 31,000,000/= is paid. Si~ A. R. Mruma Judge 16th July, 2018 3

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