19980730 TZHC Dar es Salaam

19980730 TZHC Dar es Salaam

PSRC, by operation of Act 16 of 1993, became the automatic receiver of State Travel Services Ltd upon its designation as a specified public corporation. Under Section 9 of the Bankruptcy Ordinance, property under receivership cannot be attached by creditors without leave of court. The garnishee order was improperly issued as it failed to specify account ownership and attached accounts under PSRC's receivership, contrary to statutory protection. Thus, the garnishee order must be lifted.

Citation
19980730 TZHC Dar es Salaam
Parties
Plaintiffs/decree Holders: Said Mnimbo & Others; Defendant/judgement Debtor: State Travel Service Ltd; Objector/applicant: Tourism Services Tanzania; Objector/applicant: Presidential Parastatal Sector Reform Commission (PSRC)
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
30 July 1998
Procedural Posture
Civil Case / Ruling on Application to Lift Garnishee Order
Outcome
Application allowed; garnishee order lifted.
Legal Topics
Garnishee Orders, Receivership, Public Corporations, Privatization, Terminal Benefits, Jurisdiction, Bankruptcy Ordinance, Powers of PSRC
Source Language
English
Commercial Law Labour Law Insolvency Law Administrative Law Garnishee Orders Receivership Public Corporations Privatization +4 more

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Parties

Said Mnimbo & Others

Plaintiffs/decree Holders

State Travel Service Ltd

Defendant/judgement Debtor

Tourism Services Tanzania

Objector/applicant

Presidential Parastatal Sector Reform Commission (PSRC)

Objector/applicant

Procedural Posture

Civil Case / Ruling on Application to Lift Garnishee Order

Legal Issues

  1. 1 Whether PSRC automatically becomes receiver of specified public corporations upon designation
  2. 2 Whether garnishee order can attach accounts under PSRC as receiver
  3. 3 Whether proper procedure was followed in obtaining the garnishee order

Ratio Decidendi

PSRC, by operation of Act 16 of 1993, became the automatic receiver of State Travel Services Ltd upon its designation as a specified public corporation. Under Section 9 of the Bankruptcy Ordinance, property under receivership cannot be attached by creditors without leave of court. The garnishee order was improperly issued as it failed to specify account ownership and attached accounts under PSRC's receivership, contrary to statutory protection. Thus, the garnishee order must be lifted.

Court Disposition

Application allowed; garnishee order lifted.

Orders

  • Garnishee order lifted for lack of particularity and statutory protection under PSRC receivership.
  • Each party to bear its own costs.