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Tanzania Judgment

TZHCCOMD

sodetra sprl t limited vs usangu logistic limited another 2022 tzhccomd 153 2 june 2022

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Source document

01

Holding and result

Mere pendency of a suit or application before the Court of Appeal does not operate as an automatic stay of execution, and the executing court lacks jurisdiction to grant a stay in the absence of a formal application and where no suit is pending before it.

Court disposition

application for stay of execution dismissed

Orders

  • Judgment debtors failed to show cause; execution to proceed.

02

Material facts

Parties

SODETRA (SPRL) LIMITED

Decree Holder Counsel: Erasmus Buberwa

USANGU LOGISTIC (T) LIMITED

1st Judgment Debtor Counsel: Fikiri Liganga

BENSON MWALUSAMBA

2nd Judgment Debtor Counsel: Fikiri Liganga

03

Procedural history

  1. Posture

    Execution Proceedings / Ruling on Application for Stay of Execution

04

Questions and positions

Legal issues

Party arguments

Applicant
Judgment debtors argued that the pendency of Civil Application No. 47/1 of 2021 before the Court of Appeal necessitated a stay of execution.
Respondent
Decree holder argued that the application before the Court of Appeal had not been served and that a formal application for stay was required before the competent court.

05

Court’s reasoning

  1. 01

    Order XXI Rule 27 of the Civil Procedure Code

    It is the court in which the suit is pending that is authorised to stay execution under Order XXI Rule 27 of the Civil Procedure Code.

  2. 02

    Order XXXIX Rule 5(2) of the Civil Procedure Code

    The jurisdiction of the trial court to grant an order for stay of execution of its decree ends on lapse of time for appealing.

  3. 03

    TANZANIA BUREAU OF STANDARDS Vs ANITA KAVEVA MARO, Civil Application No. 54/18 of 2017, CAT

    Observation that execution ought to stop on initiation of appeal process is obiter dictum and not binding.

06

Ratio, limits and disposition

Ratio decidendi

Mere pendency of a suit or application before the Court of Appeal does not operate as an automatic stay of execution, and the executing court lacks jurisdiction to grant a stay in the absence of a formal application and where no suit is pending before it.

Obiter and limits

  • In MBARAKA'S CASE, the court expressed views that it would be prudent for officers authorizing execution to do so only where there is no appeal pending, but this was later held to be obiter dictum.

Court disposition

application for stay of execution dismissed

  • Judgment debtors failed to show cause; execution to proceed.

Source and reliance status

TZHCCOMD · 2 June 2022

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Judgment reading view

Judgment text

The complete available source text.

Source document

TZHCCOMD

Judgment· 2 June 2022

sodetra sprl t limited vs usangu logistic limited another 2022 tzhccomd 153 2 june 2022

IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION)

AT DAR ES SALAAM (ARISING FROM EXECUTION PROCEEDINGS IN RESPECT OF COMMERCIAL CASE NO 6 OF 2008)

BETWEEN SODETRA (SPRL) LIMITED................................ DECREE HOLDER Versus USANGU LOGISTIC (T) LIMITED........... 1st JUDGMENT DEBTOR BENSON MWALUSAMBA.......................... 2nd JUDGMENT DEBTOR Last order: 28th April, 2022 Date of Ruling:2nd June, 2022

RULING MKEHA, J. When the judgment debtors were invited to show cause why the decree holder's application for execution should not be granted, they cited pendency of civil application No. 47/1 of 2021 before the Court of Appeal as the sole reason for staying execution of the decree of this court. The 1 | P age judgment debtors preferred that line of argument through Mr. Fikiri Liganga learned advocate. That, because of pendency of a suit between the decree holder and the judgment debtors before the Court of Appeal, an order for stay of execution has to be issued. Through the submissions of Mr. Erasmus Buberwa learned advocate, the decree holder submitted in reply that, the application cited by the judgment debtors had not been served upon the decree holder and that, even if there was such an application, a formal application for stay of execution would have been inevitable before the court vested with jurisdiction to entertain the same. The only issue for determination is whether mere pendency of a suit between the decree holder and the judgment debtor operates as an automatic order for stay of execution. According to the judgment debtors there is a pending suit between the judgment debtors and the decree holder. In terms of Order XXI Rule 27 of the Civil Procedure Code, it is the court in which the suit is pending that is authorised to stay execution. Again, under Order XXXIX

Rule 5 (2) of the Civil Procedure Code, the jurisdiction of the trial court to grant an order for stay of execution of its decree ends on lapse of time for appealing. 2 | P a ge The judgment debtors are now asking the executing court to stay execution of a decree passed on 6th March 2012. Save under Order XXI Rule 27 of the Civil Procedure Code, the trial court lacks jurisdiction to grant the order informally sought by the judgment debtors. However, before this court, there is no suit pending between the judgment debtors and the decree holder. Therefore, not even under Order XXI Rule 27 of the Civil Procedure Code is the stay order grantable in the circumstances of this application. In the course of making arguments for suspension of these execution proceedings, the learned advocate for the judgment debtors put reliance on the decision in AHMED M BARAKA Vs MWANANCHI ENGINEERING AND CONTRACTING CO LTD, CIVIL APPLICATION NO. 229 OF 2014, CAT (Unreported). I am mindful that, in MBARAKA'S CASE, the court expressed views that, it would be prudent for officers authorizing execution to do so in cases whereby there is no appeal pending or where none of the parties has initiated the appeal process. However, the position hereinabove was shortlived. In the case of TANZANIA BUREAU OF STANDARDS Vs ANITA KAVEVA MARO, CIVIL APPLICATION NO. 54/18 OF 2017, CAT (Unreported) the Court held that,

the observation of the Court in Mbaraka's case that the 3 | Pa ge execution process ought to stop on initiation of the appeal process was a mere obiter dictum. Therefore, in the circumstances of this case, the decision in Mbaraka's case is of no assistance to the judgment debtors. For the foregoing reasons and holdings, I make a finding that the judgment debtors have not succeeded in showing cause why the decree holder's application for execution should not be granted. It is so held. DATED at DAR ES SALAAM this 2nd day of June, 2022.

JUDGE 2/6/2022 Court: Ruling is delivered on this 2nd day of June, 2022 in the presence of Mr. Buberwa learned advocate for the decree holder. 4 | P age

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

AHMED M BARAKA Vs MWANANCHI ENGINEERING AND CONTRACTING CO LTD, Civil Application No. 229 of 2014, CAT (Unreported)

Case cited

TANZANIA BUREAU OF STANDARDS Vs ANITA KAVEVA MARO, Civil Application No. 54/18 of 2017, CAT (Unreported)

Case cited

Order XXI Rule 27 of the Civil Procedure Code

Legislation

Legislation referenced in the available case record.

Order XXXIX Rule 5(2) of the Civil Procedure Code

Legislation

Legislation referenced in the available case record.

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