iron and steel limited vs ital frame limited 2021 tzhccomd 2045 8 april 2021

iron and steel limited vs ital frame limited 2021 tzhccomd 2045 8 april 2021

The liquidator was discharged and his appointment terminated due to creditors' failure to deposit sufficient funds, making continuation of liquidation impossible. The winding up order was rescinded, reviving the company. The 10 major creditors were ordered to reimburse the liquidator for incurred costs and pay a proportionate share of his remuneration, as previously resolved.

Citation
iron and steel limited vs ital frame limited 2021 tzhccomd 2045 8 april 2021
Parties
Petitioner: Iron and Steel Limited; Respondent: Italframe Limited (Under Liquidation); Liquidator: Mr. Ayoub Mtafya; Creditor: Azania Bank Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
8 April 2021
Procedural Posture
Miscellaneous Commercial Cause (winding Up) / Ruling on Application for Discharge of Liquidator and Related Orders
Outcome
Application granted in part; liquidator discharged; winding up order rescinded; costs and remuneration apportioned among 10 major creditors.
Legal Topics
Winding Up of Companies, Liquidator Discharge, Remuneration of Liquidator, Extension of Time, Rescission of Winding Up Order
Source Language
English
Company Law Insolvency Winding Up of Companies Liquidator Discharge Remuneration of Liquidator Extension of Time Rescission of Winding Up Order

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Parties

Iron and Steel Limited

Petitioner

Italframe Limited (Under Liquidation)

Respondent

Mr. Ayoub Mtafya

Liquidator

Azania Bank Limited

Creditor

Procedural Posture

Miscellaneous Commercial Cause (winding Up) / Ruling on Application for Discharge of Liquidator and Related Orders

Legal Issues

  1. 1 Whether the liquidator should be discharged and his appointment terminated due to insufficient funds for liquidation
  2. 2 Whether the winding up order should be rescinded and the company released from liquidation
  3. 3 How costs and remuneration of the liquidator should be apportioned among creditors

Ratio Decidendi

The liquidator was discharged and his appointment terminated due to creditors' failure to deposit sufficient funds, making continuation of liquidation impossible. The winding up order was rescinded, reviving the company. The 10 major creditors were ordered to reimburse the liquidator for incurred costs and pay a proportionate share of his remuneration, as previously resolved.

Court Disposition

Application granted in part; liquidator discharged; winding up order rescinded; costs and remuneration apportioned among 10 major creditors.

Orders

  • Liquidator discharged and appointment terminated under Rule 115(2) and Rule 117(1) of the Rules.
  • Winding up order dated 18th December, 2019 rescinded under Rule 452(1); company revived and released from liquidation.