standard chartered bank hong kong ltd vs mechamar corporation malaysia berhad and seven others 2012 tzca 246 17 december 2012

standard chartered bank hong kong ltd vs mechamar corporation malaysia berhad and seven others 2012 tzca 246 17 december 2012

The High Court erred in continuing and determining Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after the proper filing of Misc. Civil Cause No. 112 of 2009, as section 249(1)(a) and (c) of the Companies Act imposed a statutory moratorium on such proceedings. The Companies Act provisions on administration orders apply to the company even if winding up commenced under the repealed Companies Ordinance, as section 486 only saves the winding up provisions, not those relating to administration. The proceedings and orders in the affected cases after 17/09/2009 are a nullity.

Citation
standard chartered bank hong kong ltd vs mechamar corporation malaysia berhad and seven others 2012 tzca 246 17 december 2012
Parties
Applicant: Standard Chartered Bank (Hong Kong) Ltd; 1st Respondent: Mechmar Corporation (Malaysia) Berhad; 2nd Respondent: VIP Engineering and Marketing Company Ltd; 3rd Respondent: Independent Power Tanzania Company Ltd (IPTL); 4th Respondent: The Liquidator of IPTL/Official Receiver; 5th Respondent: The Attorney General; 6th Respondent: The Bank of Tanzania; 7th Respondent: Tanzania Electric Supply Company Ltd; 8th Respondent: Tanzania Revenue Authority
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
17 December 2012
Procedural Posture
Civil Revision / Ruling on Revision, Post High Court Orders
Outcome
Revision allowed; proceedings and orders in Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after 17/09/2009 quashed and set aside; proceedings and orders in Misc. Civil Cause No. 112 of 2009 after 17/09/2009 quashed and set aside; matter remitted for expeditious hearing before another judge;...
Legal Topics
Administration Orders, Winding Up, Statutory Interpretation, Moratorium on Proceedings, Savings Clauses
Source Language
English
Corporate Insolvency Company Law Civil Procedure Administration Orders Winding Up Statutory Interpretation Moratorium on Proceedings Savings Clauses

Case Brief

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Parties

Standard Chartered Bank (Hong Kong) Ltd

Applicant

Mechmar Corporation (Malaysia) Berhad

1st Respondent

VIP Engineering and Marketing Company Ltd

2nd Respondent

Independent Power Tanzania Company Ltd (IPTL)

3rd Respondent

The Liquidator of IPTL/Official Receiver

4th Respondent

The Attorney General

5th Respondent

The Bank of Tanzania

6th Respondent

Tanzania Electric Supply Company Ltd

7th Respondent

Tanzania Revenue Authority

8th Respondent

Procedural Posture

Civil Revision / Ruling on Revision, Post High Court Orders

Legal Issues

  1. 1 Whether Misc. Civil Cause No. 5 of 2009 was properly withdrawn and substituted by Misc. Civil Cause No. 112 of 2009
  2. 2 Whether Misc. Civil Cause No. 112 of 2009 was competent under the Companies Act given the appointment of a Provisional Liquidator
  3. 3 Whether the High Court erred in continuing proceedings in Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after the filing of Misc. Civil Cause No. 112 of 2009

Ratio Decidendi

The High Court erred in continuing and determining Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after the proper filing of Misc. Civil Cause No. 112 of 2009, as section 249(1)(a) and (c) of the Companies Act imposed a statutory moratorium on such proceedings. The Companies Act provisions on administration orders apply to the company even if winding up commenced under the repealed Companies Ordinance, as section 486 only saves the winding up provisions, not those relating to administration. The proceedings and orders in the affected cases after 17/09/2009 are a nullity.

Court Disposition

Revision allowed; proceedings and orders in Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after 17/09/2009 quashed and set aside; proceedings and orders in Misc. Civil Cause No. 112 of 2009 after 17/09/2009 quashed and set aside; matter remitted for expeditious hearing before another judge;...

Orders

  • All proceedings and orders in Misc. Civil Cause No. 49 of 2002 and Misc. Civil Cause No. 254 of 2003 after 17/09/2009 quashed and set aside.
  • All proceedings and orders in Misc. Civil Cause No. 112 of 2009 after 17/09/2009 quashed and set aside.