kijenge animal products limited vs dr frederick shadrack ringo and another 2020 tzhc 4352 14 december 2020

kijenge animal products limited vs dr frederick shadrack ringo and another 2020 tzhc 4352 14 december 2020

Section 250(3)(d) of the Companies Act precludes proceedings against a company under administration without leave, but does not preclude the company itself from instituting proceedings for its own survival or interests. The applicant's application is competent as the statutory moratorium does not apply to proceedings by the company itself against the administrator or creditor.

Citation
kijenge animal products limited vs dr frederick shadrack ringo and another 2020 tzhc 4352 14 december 2020
Parties
Applicant: Kijenge Animal Products Limited; 1st Respondent: Dr. Frederick Shadrack Ringo; 2nd Respondent: CRDB Bank PLC
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
14 December 2020
Procedural Posture
Miscellaneous Civil Application / Ruling on Preliminary Objection
Outcome
Preliminary objection overruled; application found competent.
Legal Topics
Administration Order, Locus Standi, Leave of Court, Preliminary Objection, Company Proceedings
Source Language
English
Company Law Civil Procedure Administration Order Locus Standi Leave of Court Preliminary Objection Company Proceedings

Case Brief

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Parties

Kijenge Animal Products Limited

Applicant

Dr. Frederick Shadrack Ringo

1st Respondent

CRDB Bank PLC

2nd Respondent

Procedural Posture

Miscellaneous Civil Application / Ruling on Preliminary Objection

Legal Issues

  1. 1 Whether the application is incompetent for lack of leave from the administrator or court under section 250(3)(d) of the Companies Act
  2. 2 Whether the applicant has locus standi to sue while under administration
  3. 3 Whether the application is overtaken by events or an abuse of process

Ratio Decidendi

Section 250(3)(d) of the Companies Act precludes proceedings against a company under administration without leave, but does not preclude the company itself from instituting proceedings for its own survival or interests. The applicant's application is competent as the statutory moratorium does not apply to proceedings by the company itself against the administrator or creditor.

Court Disposition

Preliminary objection overruled; application found competent.

Orders

  • Costs shall be in the course.