gm dewji and company limited vs ayan abdullah ahmed and another 2021 tzhc 7540 30 november 2021

gm dewji and company limited vs ayan abdullah ahmed and another 2021 tzhc 7540 30 november 2021

The order for arrest and detention of the applicant’s directors was irregular and unlawful because the veil of incorporation was not lifted and there was no proof that the directors were personally liable or that the company had no attachable assets. The lower court misdirected itself by granting the order without satisfying these legal prerequisites.

Citation
gm dewji and company limited vs ayan abdullah ahmed and another 2021 tzhc 7540 30 november 2021
Parties
Applicant: G.M. Dewji & Company Limited; 1st Respondent: Ayan Abdullah Ahmed; 2nd Respondent: Paul Beda Mutagahywa
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
30 November 2021
Procedural Posture
Civil Revision / Ruling
Outcome
application allowed
Legal Topics
Execution of Decrees, Lifting the Corporate Veil, Arrest and Detention of Directors, Right to Be Heard
Source Language
English
Civil Procedure Company Law Execution of Decrees Lifting the Corporate Veil Arrest and Detention of Directors Right to Be Heard

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Parties

G.M. Dewji & Company Limited

Applicant

Ayan Abdullah Ahmed

1st Respondent

Paul Beda Mutagahywa

2nd Respondent

Procedural Posture

Civil Revision / Ruling

Legal Issues

  1. 1 Whether the order for arrest and detention of the applicant’s directors was obtained in violation of legal procedures
  2. 2 Whether the veil of incorporation was properly lifted before ordering arrest and detention of directors
  3. 3 Whether the applicant was denied the right to be heard

Ratio Decidendi

The order for arrest and detention of the applicant’s directors was irregular and unlawful because the veil of incorporation was not lifted and there was no proof that the directors were personally liable or that the company had no attachable assets. The lower court misdirected itself by granting the order without satisfying these legal prerequisites.

Court Disposition

application allowed

Orders

  • The proceedings of Execution No. 99 of 2020 are quashed and set aside.