STAMIGOLD CO

STAMIGOLD CO

The applicant did not issue the dishonoured cheques forming the basis of the summary suit, and the letter of undertaking does not constitute a valid basis for summary procedure against the applicant; therefore, the applicant has disclosed a bona fide defence and is entitled to unconditional leave to defend.

Citation
STAMIGOLD CO
Parties
Applicant: Stamigold Company Limited; 1st Respondent: Mantrac Tanzania Limited; 2nd Respondent: Junior Construction Tanzania Limited; 3rd Respondent: Suleiman Masoud Suleiman; 4th Respondent: Nchambi's Transporters Limited
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
1 January 2017
Procedural Posture
Miscellaneous Commercial Application / Ruling on Application for Leave to Appear and Defend in Summary Suit
Outcome
Application granted
Legal Topics
Summary Procedure, Leave to Defend, Bills of Exchange, Guarantee and Undertaking
Source Language
English
Civil Procedure Commercial Law Summary Procedure Leave to Defend Bills of Exchange Guarantee and Undertaking

Case Brief

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Parties

Stamigold Company Limited

Applicant

Mantrac Tanzania Limited

1st Respondent

Junior Construction Tanzania Limited

2nd Respondent

Suleiman Masoud Suleiman

3rd Respondent

Nchambi's Transporters Limited

4th Respondent

Procedural Posture

Miscellaneous Commercial Application / Ruling on Application for Leave to Appear and Defend in Summary Suit

Legal Issues

  1. 1 Whether the applicant is entitled to unconditional leave to appear and defend in a summary suit based on dishonoured cheques issued by another party
  2. 2 Whether a letter of undertaking by the applicant constitutes a sufficient basis for summary suit against it

Ratio Decidendi

The applicant did not issue the dishonoured cheques forming the basis of the summary suit, and the letter of undertaking does not constitute a valid basis for summary procedure against the applicant; therefore, the applicant has disclosed a bona fide defence and is entitled to unconditional leave to defend.

Court Disposition

Application granted

Orders

  • Unconditional leave granted to the applicant to defend in Commercial Case No. 10 of 2017
  • Applicant to file its defence within 14 days from the date of the order