sci tanzania ltd vs gulam muhamedali punjani another 2022 tzhccomd 401 20 october 2022

sci tanzania ltd vs gulam muhamedali punjani another 2022 tzhccomd 401 20 october 2022

The original oral contract of 2011 was novated by a new oral agreement in 2014, under which the Defendants were to compensate the Plaintiff with an apartment to be completed within 36 months. The cause of action accrued in December 2017 when the breach of the new agreement became apparent. The suit, filed in October 2020, is within the six-year limitation period and is not time-barred.

Citation
sci tanzania ltd vs gulam muhamedali punjani another 2022 tzhccomd 401 20 october 2022
Parties
Plaintiff: SCI (Tanzania) Ltd; 1st Defendant: Gulam Huhamedali Punjani; 2nd Defendant: Pristine Properties Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
20 October 2022
Procedural Posture
Commercial Case / Ruling on Preliminary Objection
Outcome
Preliminary objection dismissed with costs; main suit to proceed.
Legal Topics
Limitation of Actions, Novation of Contract, Breach of Contract, Preliminary Objection
Source Language
English

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Parties

SCI (Tanzania) Ltd

Plaintiff

Gulam Huhamedali Punjani

1st Defendant

Pristine Properties Limited

2nd Defendant

Procedural Posture

Commercial Case / Ruling on Preliminary Objection

  1. 1 Whether the suit is time-barred under the Law of Limitation Act, Cap.189 R.E 2019
  2. 2 Whether the original contract was novated by a subsequent agreement
  3. 3 Effect of contract novation on limitation period

Ratio Decidendi

The original oral contract of 2011 was novated by a new oral agreement in 2014, under which the Defendants were to compensate the Plaintiff with an apartment to be completed within 36 months. The cause of action accrued in December 2017 when the breach of the new agreement became apparent. The suit, filed in October 2020, is within the six-year limitation period and is not time-barred.

Court Disposition

Preliminary objection dismissed with costs; main suit to proceed.

Orders

  • Preliminary objection raised by the Defendants is dismissed with costs.
  • The main suit is to proceed as per the date to be arranged by the Court.