KOM recognized

KOM recognized

The court held that there was a valid contract between the plaintiff and the 1st defendant for the sale and transfer of Prospecting Licence No. PL 12103/2022, as the 1st defendant failed to prove coercion. The subsequent contract between the 1st and 2nd defendants was invalid as the 1st defendant had already...

Source-derived case information.

Citation
KOM recognized
Parties
Plaintiff: ROM Mining Company Limited; 1st Defendant: BHG Energy and Mineral Limited; 2nd Defendant: Reda Tanzania Resource Company Limited; 3rd Defendant: The Mining Commission; 4th Defendant: The Attorney General
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
7 January 2023
Procedural Posture
Commercial Case / Judgment
Outcome
Plaintiff's suit succeeded against all defendants except for punitive damages.
Legal Topics
Validity of Contract, Breach of Contract, Transfer of Mineral Rights, Ownership of Prospecting Licence, Bonafide Purchaser, Declaratory Relief, Damages
Source Language
english
Contract Law Mining Law Commercial Law Validity of Contract Breach of Contract Transfer of Mineral Rights Ownership of Prospecting Licence Bonafide Purchaser +2 more

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Summary, issues, holding and outcome

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Parties

ROM Mining Company Limited

Plaintiff

BHG Energy and Mineral Limited

1st Defendant

Reda Tanzania Resource Company Limited

2nd Defendant

The Mining Commission

3rd Defendant

The Attorney General

4th Defendant

Procedural Posture

Commercial Case / Judgment

  1. 1 Whether there was a valid contract between the plaintiff and the 1st defendant
  2. 2 Whether there was a valid contract between the 1st and 2nd defendants
  3. 3 Whether there was breach of contract by either party

Ratio Decidendi

The court held that there was a valid contract between the plaintiff and the 1st defendant for the sale and transfer of Prospecting Licence No. PL 12103/2022, as the 1st defendant failed to prove coercion. The subsequent contract between the 1st and 2nd defendants was invalid as the 1st defendant had already transferred rights to the plaintiff and had nothing left to sell. The 1st defendant breached the contract by halting the transfer and selling to the 2nd defendant. The transfer by the 3rd defendant to the 2nd defendant was unlawful. The 2nd defendant was not a bonafide purchaser due to lack of due diligence. The plaintiff was entitled to declaratory relief, specific performance,...

Court Disposition

Plaintiff's suit succeeded against all defendants except for punitive damages.

Orders

  • Declaration that the transfer agreement dated 7th January 2023 between the plaintiff and 1st defendant is valid.
  • Declaration that the 1st defendant breached the transfer agreement dated 7th January 2023.