19920806 TZHC Dar es Salaam

19920806 TZHC Dar es Salaam

The application for security for costs does not constitute contempt of court orders. The hearing of the application for security for costs must precede investigation into the validity of the petitioners' debt, as the purpose of such an order is to protect the debtor in the event of dismissal of the petition.

Citation
19920806 TZHC Dar es Salaam
Parties
Debtor: Asif Ahmed alias Asif Hammed Zeman; Petitioning Creditor: Reginald John Nolan; Petitioning Creditor: Transport Equipment Limited
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
6 August 1992
Procedural Posture
Bankruptcy Petition / Interlocutory Application for Security for Costs
Outcome
Objection overruled; application for security for costs to be heard before proof of debt.
Legal Topics
Security for Costs, Contempt of Court, Proof of Debt
Source Language
English
Bankruptcy Civil Procedure Security for Costs Contempt of Court Proof of Debt

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Parties

Asif Ahmed alias Asif Hammed Zeman

Debtor

Reginald John Nolan

Petitioning Creditor

Transport Equipment Limited

Petitioning Creditor

Procedural Posture

Bankruptcy Petition / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether the application for security for costs should be heard before proof of debt
  2. 2 Whether filing the application for security for costs constitutes contempt of court orders staying bankruptcy proceedings

Ratio Decidendi

The application for security for costs does not constitute contempt of court orders. The hearing of the application for security for costs must precede investigation into the validity of the petitioners' debt, as the purpose of such an order is to protect the debtor in the event of dismissal of the petition.

Court Disposition

Objection overruled; application for security for costs to be heard before proof of debt.

Orders

  • Application for security for costs to be heard before investigation into validity of debt.
  • Costs will abide the outcome of the application.