exim bank t ltd vs ms ace distributors t ltd 4 others 2023 tzhccomd 44 24 february 2023

IN THE HIGH COURT OF THE UNITED REPUBLIC OFTANZANIA (COMMERCIAL DIVISION) AT DAR ES SALAAM COMMERCIAL CASE NO. 83 OF 2019 EXIM BANK (TANZANIA) LTD..................... ................................ PLAINTIFF VERSUS M/S ACE DISTRIBUTORS ( T) LIMITED.............................1ST DEFENDANT M/S MASAKI APARTMENTS LIMITED............................... 2ND DEFENDANT SHARMAPAL BIRCHAND AGGARWAL................................ 3RD DEFENDANT ZUBEDA ABDULBERALI LALANI As administrator of the estate of ABDUL AZIZ LALANI..........................................................4thDEFENDANT ANAND SATYA VAN CHANDE............................................5™ DEFENDANT 1ST CONSENT JUDGMENT Date ofLast Order: 14/2/2023 Date ofJudgment: 24/2/2023 AGATHO, J.; This consent judgement emanates from a deed of settlement dully signed by the 5th defendant ANAND SATYAVAN CHANDE and Plaintiff in this court on,16th February,2023. Plaintiff is a registered company under the Companies Act No. 12 of 2002 R.E 2002 and licensed under the Banking and financial institution Act of 2006 to carry out banking business and the l5* and 2nd defendants are registered companies under the Companies Act No. 12 of 2002 R.E 2002, the 2nd ,3rd 4th and 5th i Defendants are guarantors of the l51 defendants' loan advanced by the plaintiff. By way of plaint the plaintiff Exim Bank (Tanzania) Limited instituted this suit against the above-named Defendants praying for judgment and decree jointly and severally for following reliefs i. Payment of principal sum of USD 623,985.58 as on 30/3/2020 ii. Payment of the interest at the rate of 8.5 per annum from 31/10/2017 to the date of full payment in full iii. Payment of penalty of 2.5% per annum for the unpaid sum from 31/10/2017 to the date of payment in full iv. Interest on the decretal sum at the court rate from the date of judgement to the date of payment in full. v. In alternative disposal of the securities vi. CostS of the suit. On 15th February, 2023 when the matter came for necessary order parties informed the court that, the parties by consent had signed Deed of settlement and the same prayed that, this court be pleased to mark the matter settled and proceed to issue consent judgment under Order XXIII Rule 3 of the Civil Procedure Code. I have dispassionately gone through the deed of settlement dated 15th February,2023, and in terms of Order XXIII Rule 3 of the Civil Procedure Code and Rule 2(2) of the High Court I (Commercial Division) Procedure Rules, 2012 as amended in 2019.1 am satisfied that, the same was mutually consented. In the view of above, the deed of settlement is hereby recorded and adopted to form part of consent judgement as prayed by parties on the following order; i. Parties agree that the total outstanding loan payable to the Plaintiff as of 18th February 2022 is TZS 8,036,413,785.71 (Say Eight Billion Thirty-Six Million Four Hundred Thirteen Thousand Seven Hundred Eighty-Five and Seventy-One Cents). ii. That in the spirit of settlement, the Plaintiff shall waive penal interest of TZS3,973,413,785.71 (say Three Billion Nine Hundred Seventy-Three Million Four Hundred Thirteen ThouSand Seven Hundred Eighty-Five and Seventy-One Cents) which shall make loan balance to be TZS 4,063,000,000.00 (say Four Billion Sixty- Three Million Only) iii. That from the agreed total outstanding loan balance bf TZS 4,063,000,000.00 mentioned above, the 5th Defendant has agreed to settle the outstanding amount of TZS 1,500,000,000.00 only (say One Billion Five Hundred Million 3 Only) and the remaining balance shall be settled by the 1* 2nd, 3rd and 4th Defendants. iv. That parties have agreed the outstanding amount of TZS 1,500,000,000 shall be paid within eight (8) years whereas for the period starting from December 2022 to December 2023, the 5th Defendant shall make a total deposit of TZS 55,920,000.00 (say, Tanzania Shillings Fifty-five Million Nine Hundred Twenty Thousand) as per below Settlement Repayment Schedule. No interest will be paid during this period. v. That the remaining balance of TZS 1,442,682,000.00 (say Tanzania Shillings One Billion Four Hundred Forty-Two Million Six Hundred Eighty-Two Thousand) shall be repaid within a period of 84 months at 5.0% per year as per below Settlement Repayment Schedule: Settlement Repayment Schedule Pmt Payment Beginnirig. Principle Amount Interest Required . Ending Interest Period Date Balance Amount Installment Balance Rate Amount 1,500,000,000.00 ,0.00 . °-00. 0.00 1,500,000,000.00 0% 0 27-NOV-2022 1,500,000,000.00 1,398,000.00 1,398,000.00 1,498,602,000.00 0% 0 27-Dec-2022 0.00 1,498,602,000.00 1,398,000.00 1,398,000.00 0% 1 27-Jan-2023 0.00 1,497,204,000.00 1,398,000.00 1,398,000.00 1,495,806,000.00 0% 2 27-Feb-2023 1,497,204,000.00 0.00 3 27-Mar-2023 1,495,806,000.00 1,398,000.00 0.00 1,398,000.00 1,494,408,000.00 0% 4 4 27-Apr-2023 1,494,408,000.00 1,398,000.00 0.00 1,398,000.00 1,493,010,000.00 0% 5 27-May-2023 1,493,010,000.00 1,398,000.00 0.00 1,398,000.00 1,491,612,000.00 0% 6 27-Jun-2023 1,491,612,000.00 6,990,000.00 0.00 6,990,000.00 1,484,622,000.00 0% 7 27-Jul-2023 1,484,622,000.00 6,990,000.00 0.00 6,990,000.00 1,477,632,000.00 0% 8 27-Aug-2023 1,477,632,000.00 6,990,000.00 0.00 6,990,000.00 1,470,642,000.00 0% 9 27-Sep-2023 1,470,642,000.00 6,990,000.00 0.00 6,990,000.00 1,463,652,000.00 0% 10 27-Oct-2023 1,463,652,000.00 6,990,000.00 0.00 6,990,000.00 1,456,662,000.00 0% 11 27-NOV-2023 1,456,662,000.00 6,990,000.00 0.00 6,990,000.00 1,449,672,000.00 0% 12 27-Dec-2023 1,449,672,000.00 6,990,000.00 0.00 6,990,000.00 1,442,682,000.00 0% 13 2-7-Jan=2O24 1,442,682,000.00 9,018,542.19 6,126,457.81 15,145,000.00 1,433,663,457.81 5% 14 27-Feb-2024 1,433,663,457.81 9,056,840.11 6,088,159.89 15,145,000.00 1,424,606,617.70 5% Required Inte Pmt Payment Principle Interest Instalment Ending Beginning Balance rest Period Date Amount Amount Amount Balance Rate 15 27-Mar-2024 1,424,606,617.70 9,485,603.85 5,659,396.15 15,145,000.00 1,415,121,013.85 5% 16 27-Apr-2024 1,415,121,013.85 9,135,582.00 6,009,418.00 15,145,000.00 1,405,985,431.85 5% 17 27-May- 1,405,985,431.85 9,366,977.68 5,778,022.32 15,145,000.00 1,396,618,454.18 5% 2024 18 27-Jun-2024 1,396,618,454.18 9,214,154.51 5,930,845.49 15,145,000.00 1,387,404,299.67 5% 19 27-Jul-2024 1,387,404,299.67 9,443,338.49 5,701,661.51 15,145,000.00 1,377,960,961.17 5% 20 27-Aug-2024 1,377,960,961.17 9,293,384.96 5,851,615.04 15,145,000.00 1,368,667,576.21 5% 21 27-Sep-2024 1,368,667,576.21 9,332,850.02 5,812,149.98 15,145,000.00 1,359,334,726.19 5% 22 27-Oct-2024 1,359,334,726.19 9,558,692.91 5,586,307.09 15,145,000.00 1,349,776,033.29 5% 23 27-Nov-2024 1,349,776,033.29 9,413,074.38 5,731,925.62 15,145,000.00 1,340,362,958.91 5% 24 27-Dec-2024 1,340,362,958.91 9,636,659.07 5,508,340.93 15,145,000.00 1,330,726,299.84 5% 25 27-Jan-2025 1,330,726,299.84 9,493,970.51 5,651,029.49 15,145,000.00 1,321,232,329.33 5% 26 27-Feb-2025 1,321,232,329.33 9,534,287.37 5,610,712.63 15,145,000.00 1,311,698,041.96 5% 27 27-Mar-2025 1,311,698,041.96 10,113,829.43 5,031,170.57 15,145,000.00 1,301,584,212.53 5% 28 27-Ap-2025 1,301,584,212.53 9,617,724.58 5,527,275.42 15,145,000.00 1,291,966,487.95 5% 29 27-May- 1,291,966,487.95 9,835,548.68 5,309,451.32 15,145,000.00 1,282,130,939.28 5% 2025 30 27-Jun-2025 1,282,130,939.28 9,700,334.37 5,444,665.63 15,145,000.00 1,272,430,604.91 5% 31 27-Jul-2025 1,272,430,604.91 9,915,833.13 5,229,166.87 15,145,000.00 1,262,514,771.78 5% 32 27-Aug-2025 1,262,514,771.78 9,783,635.90 5,361,364.10 15,145,000.00 1,252,731,135.88 5% 33 27-Sep-2025 1,252,731,135.88 9,825,182.85 5,319,817.15 15,145,000.00 1,242,905,953.03 5% 34 27-Oct-2025 1,242,905,953.03 10,037,167.32 5,107,832.68 15,145,000.00 1,232,868,785.71 5% 35 27-NOV-2025 1,232,868,785.71 9,909,529.81 5,235,470.19 15,145,000.00 1,222,959,255.90 5% 36 27-Dec-2025 1,222,959,255.90 10,119,140.04 5,025,859.96 15,145,000.00 1,212,840,115.85 5% 37 27-Jan-2026 1,212,840,115.85 11,159,583.07 5,150,416.93 16,310,000.00 1,201,680,532.78 5% 38 27-Feb-2026 1,201,680,532.78 11,206,973.08 5,103,026.92 16,310,000.00 1,190,473,559.70 5% 39 27-Mar-2026 1,190,473,559.70 11,743,800.04 4,566,199.96 16,310,000.00 1,178,729,759.66 5% 40 27-Apr-2026 1,178,729,759.66 11,304,435.27 5,005,564.73 16,310,000.00 1,167,425,324.39 5% 41 27-May- 1,167,425,324.39 11,512,361.68 4,797,638.32 16,310,000.00 1,155,912,962.71 5% 2026 42 27-Jun-2026 1,155,912,962.71 11,401,328.51 4,908,671.49 16,310,000.00 1,144,511,634.20 5% 43 27-Jul-2026 1,144,511,634.20 11,606,527.53 4,703,472.47 16,310,000.00 1,132,905,106.67 5% 44 27-Aug-2026 1,132,905,106.67 11,499,033.11 4,810,966.89 16,310,000.00 1,121,406,073.56 5% 45 27-Sep-2026 1,121,406,073.56 11,547,864.62 4,762,135.38 16,310,000.00 1,109,858,208.94 5% 46 27-Oct-2026 1,109,858,208.94 11,748,938.87 4,561,061.13 16,310,000.00 1,098,109,270.07 5% 47 27-NOV-2026 1,098,109,270.07 11,646,796.25 4,663,203.75 16,310,000.00 1,086,462,473.82 5% 48 27-Dec-2026 1,086,462,473.82 11,845,085.72 4,464,914.28 16,310,000.00 1,074,614388.10 5% 49 27-Jan-2027 1,074,617,388.10 13,494,056.30 4,563,443.70 18,057,500.00 1,061,123,331.80 5% 50 27-Feb-2027 1,061,123,331.80 13,551,359.82 4,506,140.18 18,057,500.00 1,047,571,971.98 5% 51 27-Mar-2027 1,047,571,971.98 14,039,415.72 4,018,084.28 18,057,500.00 1,033,532,556.25 5% 52 27-Apr-2027 1,033,532,556.25 13,668,526.13 4,388,973.87 18,057,500.00 1,019,864,030.12 5% 53 27-May- 1,019,864,030.12 13,866,277.96 4,191,222.04 18,057,500.00 1,005,997,752.16 5% 2027 54 27-Jun-2027 1,005,997,752.16 13,785,454.75 4,272,045.25 18,057,500.00 992,212,297.41 5% 55 27-Jul-2027 992,212,297.41 13,979,915.22 4,077,584.78 18,057,500.00 978,232,382.20 5% 56 27-Aug-2027 978,232,382.20 13,903,362.49 4,154,137.51 18,057,500.00 964,329,019.71 5% 57 27-Sep-2027 964,329,019.71 13,962,404.16 4,095,095.84 18,057,500.00 950,366,615.55 5% 27-Oct-2027 950,366,615.55 14,151,883.77 3,905,616.23 18,057,500.00 936,214,731.77 5% 59 27-NOV-2027 936,214,731.77 14,081,793.60 3,975,706.40 18,057,500.00 922,132,938.17 5% 60 27-Dec-2027 922,132,938.17 14,267,912.58 3,789,587.42 18,057,500.00 907,865,025.59 5% Required Pmt Payment Principle Interest Instalment Amount Ending Interest Beginning Balance Balance Rate Period Date Amount Amount 61 27-Jan- 907,865,025.59 20,027,182.77 3,855,317.23 23,882,500.00 887,837,842.82 5% 2028 62 27-Feb- 887,837,842.82 20,112,229.71 3,770,270.29 23,882,500.00 867,725,613.11 5% 2028 63 27-Mar- 867,725,613.11 20,435,370.85 3,447,129.15 23,882,500.00 847,290,242.26 5% 2028 64 27-Apr- 847,290,242.26 20,284,418.15 3,598,081.85 23,882,500.00 827,005,824.11 5% 2028 65 27-May- 827,005,824.11 20,483,845.93 3,398,654.07. 23,882,500.00 806,521,978.18 5% 2028 66 27-Jun- 806,521,978.18 20,457,543.65 3,424,956.35 23,882,500.00 786,064,434.53 5% 2028 67 27-Jul- 786,064,434.53 20,652,098.21 3,230,401.79 23,882,500.00 765,412,336.31 5% 2028 68 27-Aug- 765,412,336.31 20,632,118.85 3,250,381.15 23,882,500.00 744,780,217.47 5% 2028 5% 6 69 27-Sep- 744,780,217.47 20,719,734.69 3,162,765.31 23,882,500.00 2028 724,060,482.77 5% 27-Oct- 70 2028 724,060,482.77 20,906,908.97 2,975,591'03 23,882,500.00 703,153,573.80 5% 27-Nov- 71 2028 703,153,573.80 20,896,505.37 2,985,994.63 23,882,500.00 682,257,068.43 5% 27-Dec- 72 2028 682,257,068.43 21,078,703.83 2,803,796.17 23,882,500.00 661,178,364.60 5% 27-Jan- 73 2029 661,178,364.60 25,734,756.26 2,807,743.74 28,542,500.00 635,443,608.34 5% 27-Feb- 74 2029 635,443,608.34 25,844,040.84 2,698,459.16 28,542,500.00 609,599,567.50 5% 27-Mar- 75 2029 609,599,567.50 26,204,309.88 2,338,190.12 28,542,500.00 583,395,257.62 5% 27-Apr- 76 2029 583,395,257.62 26,065,068.08 2,477,431.92 28,542,500.00 557,330,189.54 5% 27-May- 77 2029 557,330,189.54 26,252,101.96 2,290,398.04 28,542,500.00 531,078,087.57 5% 27-Jun- 78 2029 531,078,087.57 26,287,236.89 2,255,263.11 28,542,500.00 504,790,850.69 5% 27-Jul- 79 2029 504,790,850.69 26,468,017.05 2,074,482.95 28,542,500.00 478,322,833.63 5% 27-Aug- 80 2029 478,322,833.63 26,511,266.05 2,031,233.95 28,542,500.00 451,811,567.58 5% 27-Sep- 81 2029 451,811,567.58 26,623,848.14 1,918,651.86 28,542,500.00 425,187,719.45 5% 27-Oct- 82 2029 425,187,719.45 26,795,153.21 1,747,346.79 28,542,500.00 398,392,566.24 5% 27-Nov- 83 2029 398,392,566.24 26,850,695.95 1,691,804.05 28,542,500.00 371,541,870.29 5% 27-Dec- 84 2029 371,541,870.29 27,015,615.60 1,526,884.40 28,542,500.00 344,526,254.69 5% 27-Jan- 85 2030 344,526,254.69 28,001,657.30 1,463,056.70 29,464,714.00 316,524,597.38 5% 27-Feb- 86 2030 316,524,597.38 28,120,568.45 1,344,145.55 29,464,714.00 288,404,028.93 5% 27-Mar- 87 2030 288,404,028.93 28,358,506.77 1,106,207.23 29,464,714.00 260,045,522.17 5%. 27-Apr- 88 2030 260,045,522.17 28,360,411.10 1,104,302.90 29,464,714.00 231,685,111.07 5% 27-May- 89 231,685,111.07 28,512,583.41 952,130.59 29,464,714.00 203,172,527.66 5% 2030 90 27-Jun- 29,464,714.00 2030 203,172,527.66 28,601,926.55 862,787.45 174,570,601.11 5% 91 27-Jul- 29,464,714.00 5% 145,823,300.54 2030 174,570,601.11 28,747,300.57 717,413.43 27-Aug- 92 145,823,300.54 619,249.63 29,464,714.00 5% 2030 28,845,464.37 116,977,836.17 93 27-Sep- 5% 2030 116,977,836.17 28,967,958.81 496,755.19 88,009,877.37 5% 29,464,714.00 94 27-Oct- 2030 88,009,877.37 29,103,029.57 361,684.43 58,906,847.80 5% 29,464,714.00 27-Nov- 95 2030 58,906,847.80 29,214,561.63 250,152.37 29,464,714.00 29,692,286.16 5% 27-Dec- 96 2030 29,692,286.16 29,342,690.91 122,023.09 29,464,714.00. 349,595.26 5% .7 vi. Upon full payment of the amount stipulated in 1.4 and 1.5 above, the 5th Defendant to be discharged from all liabilities in relation to this matter. vii. That the 5th Defendant agrees to withdraw the on-going litigation proceedings against the Plaintiff filed at the High Court Dar es Salaam District Registry i.e., Civil Case No. 255 of 2017 upon signing of this settlement deed viii. That the Plaintiff covenants to the 5th Defendant that once this settlement deed is executed by the parties, he shall have no further claims whatsoever against the 5th Defendant in regard to the loan transaction in issue. ix. The 5th Defendant shall be excluded from payment of early financial settlement fees when making capital reduction payment. x. This Agreement shall, upon been filed in Court, have the Same effect as a decree duly made by the Court capable of being executed in the same manner as ariy other decree of the Court. xi. Parties have agreed that should the 5th Defendant default to pay two consecutive instalments as agreed under paragraph 1.4 and 1.5 above, will be considered as a default in this Agreement. 8 xii. That, in event of default as set out in paragraph 3.1 hereinabove, the amount which will be due and not paid shall attract penalty interest of 7.0 percent per annum, and will be charged every month until paid. xiii. That, in event of default to pay the Settlement Amount agreed herein within the stipulated time, the whole amount set out in this Deed of Settlement, shall become payable immediately; and the 5th Defendant shall have the first opportunity to liguidate the guarantees and the mortgaged properties within four months (4) from date of last default, to realize the outstanding amounts. xiv. In the event that 5th Defendant is unable or unwilling. to liguidate the assets, the Defendants shall be at liberty to do so, to recover the said Settlement Sum.. xv. That the Parties herein have the authority and capacity to enter into this Agreement. xvi. This Agreement shall be in English Language. All notices: Communication under or in connection with this Agreement shall be in the English Language. 9 xvii. This Agreement shall be executed in Three originals all of them being equally authentic and all constituting one instrument. xviii. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their respective successors in title and representatives and shall not be enforceable by or inure to the benefit of any third party. xix. No waiver of the breach of the terms of or any default under this Agreement shall be deemed a waiver of any subsequent breach or default or in any way affect the other terms of this Agreement. By this consent decision, therefore, this Court hereby declares that the parties herein have resolved their dispute and, this suit is marked "settled on the compromise of the parties" as evidenced by the terms agreed under the said "Deed of Settlement". For the reasons aforesaid, the "Deed of Settlement" signed by the parties and filed in this Court constitutes the Judgment and Decree of this Couft. It is so ordered. 10 DATED at DAR ES SALAAM this 24th Day of February 2023. Date: 24/02/2023 Coram: Hon. U. J. Agathoz J. For Plaintiff: Robert Mosi (Advocate) lst - 4th Defendants: Absent 5th Defendant: Present C/Clerk: Beatrice Court: Judgment delivered todayz this 24th February, 2023 in the presence of Robert Mosi, learned counsel for the Plaintiff and the 5th Defendant. U. X AGATHO JUDGE 24/02/2023 ii