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Tanzania Judgment

TZHC

industrial safety general mercantile limited vs tanzania building agency another 2021 tzhc 9186 2 december 2021

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The parties reached a binding settlement agreement, filed a deed of settlement, and the court recorded the settlement as a consent judgment, thereby resolving all claims between the parties.

Court disposition

Case settled by consent judgment and marked withdrawn.

Orders

  • Defendants to pay plaintiff TZS 34,493,760 without interest as full and final settlement.
  • Defendants have already paid TZS 7,500,000; remaining TZS 26,993,760 to be paid in three instalments within three months.
  • If payment schedule is not complied with, the total claim will attract 7% annual interest and plaintiff may pursue execution.
  • Each party to bear its own costs.
  • Defendants to provide plaintiff with withholding tax certificates for the contract sum.

02

Material facts

Parties

Industrial Safety and General Mercantile Limited

Plaintiff

Tanzania Building Agency

1st Defendant

The Attorney General

2nd Defendant

Amounts and remedies

  • Total Settlement Amount: TZS 34,493,760
  • Amount Already Paid: TZS 7,500,000
  • Remaining Balance: TZS 26,993,760
  • Interest Rate on Default: percent per annum 7

03

Procedural history

  1. Posture

    Civil Case / Consent Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff sought payment of TZS 34,493,760, general damages, interest, and costs from the defendants.
Respondent
The defendants agreed to settle the matter by paying the plaintiff TZS 34,493,760 without interest as full and final settlement.

05

Court’s reasoning

  1. 01

    Order XXIII, Rule 3 of the Civil Procedure Code, Cap 33 R.E.2019

    A suit may be settled out of court by a deed of settlement, which, once filed and recorded, binds the parties as a decree of the court.

06

Ratio, limits and disposition

Ratio decidendi

The parties reached a binding settlement agreement, filed a deed of settlement, and the court recorded the settlement as a consent judgment, thereby resolving all claims between the parties.

Court disposition

Case settled by consent judgment and marked withdrawn.

  • Defendants to pay plaintiff TZS 34,493,760 without interest as full and final settlement.
  • Defendants have already paid TZS 7,500,000; remaining TZS 26,993,760 to be paid in three instalments within three months.
  • If payment schedule is not complied with, the total claim will attract 7% annual interest and plaintiff may pursue execution.
  • Each party to bear its own costs.
  • Defendants to provide plaintiff with withholding tax certificates for the contract sum.

Source and reliance status

TZHC · 2 December 2021

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Judgment reading view

Judgment text

The complete available source text.

Source document

TZHC

Judgment· 2 December 2021

industrial safety general mercantile limited vs tanzania building agency another 2021 tzhc 9186 2 december 2021

IN THE HIGH COURT OF UNITED REPUBLIC OF TANZANIA (DAR ES SALAAM REGISTRY)

AT DAR ES SALAAM CIVIL CASE NO. 125 OF 2020

INDUSTRIAL SAFETY AND GENERAL MERCANTILE LIMITED................................................................... PLAINTIFF

VERSUS TANZANIA BUILDING AGENCY.........................1st DEFENDANT THE ATTORNEY GENERAL................................ 2nd DEFENDANT

CONSENT JUDGMENT Date oflast order: 29/11/2021 Date ofjudgment: 2/12/2021 LALTAIKA, J. The plaintiff herein instituted a suit against the first and second defendants seeking for the following reliefs; a. An order for the 1st defendant to pay the plaintiff a sum of Tanzanian Shillings 34,493,760/= b. Order of payment of general damages at the rate to be assessed by this honourable court. c. Payment of interest on both substantive claim and general damages at the commercial bank landing rate of 20% per annum from March,2017 to the day of full and final payment. i d. Interest on both substantive claim and general damages at the court rate of 7% per annum from the date of judgment to the date of full and final payment. e. Costs and incidental to this matter f. Any other remedy this honourable Court deems fit to grant. Before hearing of the suit by mutual agreement to compromise, the parties herein opted to settle the matter out of Court. They amicably settled the matter and filed a deed of settlement before this Court on 23rd September,2021 comprising of the following conditions; 1. That the defendant shall pay the plaintiff an aggregate amount of Tanzanian Shillings 34,493,760/= without interest as full and final settlement of all claims.

2. That subject to paragraph 1 above the 1st defendant has already deposited a sum of Tanzanian Shillings 7,500,000/= in the plaintiff's account which the plaintiff has acknowledged.

3. That the remaining balance of Tanzanian Shillings 26,993,760/= shall be paid in three instalments, provided that the whole amount must be paid in full within three months from the date the court records the deed of settlement as a decree of the court.

4. That in any event the defendant's fails to comply with payment schedule stipulated under clause three above the amount of the total claim shall attract interest of 7% annually. Provided that the plaintiff shall be at liberty to pursue execution proceedings for the whole amount at any time.

5. That this deed of settlement shall be filed before the Court and henceforth the case shall be marked as settled as between the plaintiff and the defendants. 2 6. That it is agreed between the parties that this deed settles all matters pending between the parties including costs of the case as each party shall bear its own costs.

7. That this deed of settlement binds parties named herein, their successors, agents, representatives or any related partner derived from merger.

8. That this deed of settlement contains the entire agreement between the parties and no party shall be bound by any understanding, representation, warranties, promise or the like that are not recorded herein.

9. That the defendants shall for purposes of this deed exhibit and avail to the plaintiff a copy of the withholding tax certificates for the whole amount deducted in the contract sum as proof of remittance of the same to responsible authority. Upon the parties reaching into that consensus agreement and upon the deed of settlement signed by both parties being lodged to this court under Order XXIII, Rule 3 of the Civil Procedure Code, Cap 33 R.E.2019, the matter is hereby settled and marked withdrawn. Each party to bear its own costs 2/ 12/2021 3

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Order XXIII, Rule 3 of the Civil Procedure Code, Cap 33 R.E.2019

Legislation

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