exim bank tanzanialtd vs five b hotels tours ltd cons commercial reference no1619 2023 tzhccomd 107 6 april 2023

exim bank tanzanialtd vs five b hotels tours ltd cons commercial reference no1619 2023 tzhccomd 107 6 april 2023

Where two or more advocates are awarded costs for representing a party in a contentious suit for a liquidated sum, the total instruction fee must not exceed the 3% scale set by item 8 of the 9th schedule to the Advocates Remuneration Order, and must be apportioned among the advocates; separate full instruction fees...

Source-derived case information.

Citation
exim bank tanzanialtd vs five b hotels tours ltd cons commercial reference no1619 2023 tzhccomd 107 6 april 2023
Parties
Applicant: Exim Bank (Tanzania) Ltd.; Respondent: M & Five B Hotels & Tours Ltd.
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
6 April 2023
Procedural Posture
Commercial Reference (consolidated Nos. 16 & 19 of 2022) / Ruling on Reference Against Taxation Decisions
Outcome
Reference applications partly allowed and partly dismissed.
Legal Topics
Taxation of Costs, Instruction Fees, Certification for Multiple Advocates, Liquidated Sums, Jurisdiction During Appeal, Advocates Remuneration Order Interpretation
Source Language
en
Civil Procedure Costs and Taxation Taxation of Costs Instruction Fees Certification for Multiple Advocates Liquidated Sums Jurisdiction During Appeal Advocates Remuneration Order Interpretation

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Parties

Exim Bank (Tanzania) Ltd.

Applicant

M & Five B Hotels & Tours Ltd.

Respondent

Procedural Posture

Commercial Reference (consolidated Nos. 16 & 19 of 2022) / Ruling on Reference Against Taxation Decisions

  1. 1 Whether two taxation causes can be entertained for the same suit
  2. 2 Whether instruction fees were properly taxed and apportioned between two advocates
  3. 3 Whether certification for costs to two advocates was properly granted

Ratio Decidendi

Where two or more advocates are awarded costs for representing a party in a contentious suit for a liquidated sum, the total instruction fee must not exceed the 3% scale set by item 8 of the 9th schedule to the Advocates Remuneration Order, and must be apportioned among the advocates; separate full instruction fees for each advocate are not permissible.

Court Disposition

Reference applications partly allowed and partly dismissed.

Orders

  • Decisions of taxing officers in Taxation Causes No. 86 and No. 100 of 2022 varied with respect to instruction fees only.
  • Total instruction fee set at TZS 190,731,687 (3% of the suit amount), to be divided equally between the two advocates (TZS 95,365,343.50 each).