20020729 TZCA Dar es Salaam

. - AT DAR ES Sf\.LAAM CIVIL APPEAL NOe 33 OF 1999 (OJNSOLIDATED WITH CIVIL APPEAL NO., 40 OF 1999) BETWEEN 1 0 TANZANIA ELECTRIC SUPPLY COMPANY LIMITED I ~o THE PERMANENT SECRETARY, MINISTRY OF I ENERGY & MINERALS I 3. THE PERMANENT SECRETARY, MINISTRY OF r APPELLANTS FINANCE r 4. THE AT'IDRNEY GENERAL l AND INDEPENDENT POWER TANZANIA LIMIT'.iED o • • o • • • • • • RESPONDENT (Appeal from the Decision and Order of the High Court of Tanzania (Dar es Salaam Main Registry) at Dar es Salaam) dated 5th March, 1999 HC Miscellaneous .,,,. -- __ . ____ ,,, Civil Application ...,,.,,._._,...;_ ,___...,. in No. 61 of 1998 RULING This matter arises from the decision of the High Court (Msurni 1 J.K.) of 5.3,.1999 in Miscellaneous Civil Cause No. 91 of 1998. By Chamber Summons the respondent, Independertt Power Tanzania Limited had\ought eight (8) interim ~andatory orders which, except for _) prayer number 5, were granted. The appellants were dissatisfied, they appealed to this Court. When the appeal was called on for hearing, at the instance of the Court, counsel for both parties addressed the issue whether it was not an academic exe~cise at this stage for the Court to deal with the appeal. This is so having regard to the fact that ••• /2 2 the International Centre for Settlement of Investment Disputes (hereinafter to be referred to as ICSID) had resolved the dispute in its Final Award of 12.7.2001. Mr. Mkono, learned counsel, assisted by Dr. Kapinga and ...Captain (retired) Kameja, learned Counsel, appeared for the first appellant, Tanzania Electric Supply Company Limited. He strenuousfy .maintained that the appeal was not academic because- .the order· of the High Court (Msumi,· J.K.) dated 5.3.1999 was still effective. Unless this-order is vacated, Mr. Mkono further submitted, the first appellant would still be required to pay the amount of USD 3.623 million. He also stated that the decision of the High Court should not be left to remain on record because there are serious legal errors calling for rectification by the Court of Appeal. However, he p,.'(jvaricated on the issue whether or not the matter had finally_ ~ .. been ~esolved'by th~ ICSID. At first, he took the view that the matter had not peen finally resolved in arbitration, however, ·1ater ; ' c.::. teflection~ he appareritiy coriceded that the matter had· finally . . been resolved. He said.the main conc:e:rn for the appellant wa:s the ' ' . \ ' . ' ~ - . ---- . . . question of costs in this Court, bef:o:r:e the Single Ju~ge o_f the Court and the High Court.~ f'1r •. S~lula, learned Principal State Attorney, represented the second~~pp~tlant the Permanent_Secretary, Ministry (?.f Ene.rgy and Minerals, the third appellant, t,he P~rmanent Secretary, Min:lstry of Finance _anc} the fo~th ap~ellant, the Attorney_Ge~eralo Not only did he not submit written skeleton su~miss~ons as_~:rayed !or by the resp~ndent,c1l1d ordered by the Court on.18.2. .. 2002, he did n:ot have,anything to submit on the status of~the ~ppe~ 'oefQre ~he .Court. ao- • •' He,rnerelY._ru.;sociated . . . himself with .:t;h,e . sub!'Jlissions . ... , ..., by., Mr. . Mkono. ! .,. . .•o ,./3 • 'I ! ' - 3 - Or,. behalf of Independent Power Tanzania Limited, the respondent, Dr. Tenga, learned advocate, assisted by Mro Mbwambo appearedo AcQording to Dr. Tenga, it would be an acad~mic exercise _______ ;for ·the--Court· to-entertain the appeal at this stage. In elaboration, he referred to paragraph 6 of the High Court Chamb~r Summons which provides to the effect that the interim mandatory orders shall subsist until when the tariff is resolved. The dispute ha.ving been finally s.ettled by the ICSID, Dr., Tenga urged, the order, of 5.3.20◊1 · by Msumi 1 JaKo lapsed. In the abcence of a valid court order, he submittGd that the appeal is inc0mpetent, it should be struck out. Upon serious consideration of these rival arguments on the legal status of the appeal 5 we think.there is _merit in_ Dr. Tenga's submissions . According to Art-icle ·i8.3 of the Power Purchasing Agreement (PPA) between the respondent, Independent Power Tanzania • 1 \ "-••• 41,•: "fl r ,., .. ~ •..-_•,-7• -:r,i•.•,,... ..,. '"J:'r ;." _.. .~•,._.I .- \' , Limitedi. arid tlie "first-~appellapt, "Tanzania'-Electric :supply Company . , ) . . ' . .. \ :cimi t'J'J,. ~ dfspll t'e·· arismg oilt' -~i' "~i ·1n ''&,iin·elt ;ion ~i-th , th~ :'.i ,:::. 1 . _..... • '. . ,- • -- • " -• ~ - ., •; ... ..... . • ~ . ., , .... +- ·.~ ·\ . ,- \ • I. ,, .. ~ t _. -.. ·"I . dbmmori ground that' when: M:i..scellaii'eous Applica:tioxi·Wo. 61 of" 1998' -···· I •J . • r was filed in the High Court • - '> .. I • • oh "30. '11.1998 the matter ha:d ·already'_,. • • • • ..,_ • • • ,.. •':' \ .. "'• ' ,. •, 0 • •: 0 -be~ lod:j;ed with the ·ICSID on' 25."1101"998.: ·rt· is apparent;'the~efore, that the orders ~fought i~' the' High co'urt ,were int.d:rim' -penciing :the-':: . 0 • , ...... f -~ final deterlAinatfon ··of the ·dispute by the- ICS:m: This is refJect~d'· I. 6~: ·· Tha1~~the I.A.~~i!mJ1~<lafory_ln_j_urisi_~9E. 6rct'er~ t,- -:: ~-. : ~~-'---r 13hall ·subsist•··until whEfn. :the __ tariff. dis_put:e. : ::·.. ·· 9 - ... . is resol~ed and th~t up~n resoiution of the . ._,~ .... --~· .:..'! (-~ ~J".,•~~ -··~ • --~ _~') '": ·t ......' . ~ n. - -;. :-'1. ·-. .. ~ .. ,,. <ly-~.: dispute recalculations shall be made from "· ., .· q5th S(iptem'l!ierj '·199g::'f:[1i:·t11e ·:date wh~n the' ..· .."fc.:: ·r .,'f"' • 1 ,. - ::."' • '• • "•:ri.·.: . . 1.,! I •• - -- l • .' ~ ··:-;-~~. , ·:--•.t.~:S..·=-·~ . ~ . ~-- ... \·'l.·. • \ -~~·.-;~I!•:--r;: 1:,- .. :1...:".-e_:•~] cr~·1,..:_;.,f. ~~1::,f;8 - r~1-.. !..1 :t ·,t,.Jct ~:;.;:t.,~c· ·-1..··,~1..:r:J ,_. 0 ;, ·.;;.:::;: :: ..-·-:.. 'f,:;-+-}J-::si:i~j d>~: ~:\~'le I_~.·--~/_:;: 0 ::.• .. ·::,:'7::/\;.1/~.~: 1:·i·/·.~:-,~'.cl :::C:. 0 4_(;1..'·j, _f J:~i~:;..:: ·t .....,.,. ..i ·~ ~· j ~· ~ ........ ~ A~... (,.·., .-,\;,• /"°':";L {·t_,_-:,;·-:lj_~:·~ ...·:,.,., . 4 dispute is resolved using the awarded tariff rates and in case the result will be that the Applicants were overpaid during the interim period such·· over pay- ments shall be recovered from future monthly capacity payments due to the Applicants and _vice--versa. -(underlining supplied). _____...Erom_t}1.e___ 9lear... and unamb.igu<:;us--wording. of the .. High-Court~der---.of ,._,_..._____ 5..-_.3.. 1999 under this paragraph of the Chambers Summons, it was . - ,·::----._ ........ .envisaged---that the r.elief_..sought ·would----subsist--un-til. the._ ti.me·· ·. . --------·--- .1-1~en the dispute.. llras. resolved by the- ICSID •... The --disp1it-e-·ha.~ been resolved on 12.7.2001 vide case No. ARB/~8/8, we agree with . ------- ----- : ~- _J)r;~.enga__.that---tM. orders--embodied .in the. .dec.ision--of-the-High.-Court-, ···· . . .. of 5.3.1999, lapsed on--12..-?--...200i.when the ..£:inaL arbitratio~ .. -- was_ .handed· .down.. .In -o-ur view, the -orders, the subject- ·-of the-appeal·. . in.!7J ~-·~-.._; Ct'd··trcf;q _;j__· ..,--~. j_,s 1-- .. Y.:.J.v(,.,,.:i 1 . , .. having lapsed,. :ther,.e ,is. n~ be.pis, UJ'9D:-,whi;Ch.. t-p_ groupd the .appeal. in ··- _... - .:.. ... - \, ..... --1 ... - · ,( • • • .... t. '.• ._, ........ t, __ , •• -, . • (', .. _... . . . . ·.• . .,_.i_ -· ,. ~ t'" , ; ~..) _...,.,.~ ... ~ ~~:.i~'i"": .~........... --........_ _____ .. , of 503.1999~- As shown in"paragraphi 'of the Chamber Summons the --·::---------7:::---:-•.~-ers-w~p~--in:t,~~itrt- .. - pe,r,i9ft. .which, ...a,s~ already . observed, ended \. ~ ..... ,.- •~-:.. ... ,. . , ., . - . . ·- ... --- ·-· ·_ - rr ' ~ -:- , ·..., --great--respect~i;o.. I"ir~ Mkono, learned counsel, the order which· the Cp_l,lrj; :i;.s., ~g(!4_ .; .:i., • .a.. ·•J.,. tq VB:¥,°!t~.-. n.o ).op.g~:r:-'".,sµ~sists.. Whc;3._t. :i;s._ ~c:>.ught).n ~. .- • • • \., • '•'" f • ' 1_. _ _\.,., • • 11. ..... :.~ V \.l.1-•• · • • \.~... ,~ •·'' • -~- • '41 V ._ __ _,_ ••• '• •• •· •,4" , #, tJ;ie. ✓ pr9-y~r~ .. P,~t .p,f; the 1 me.rno.r~dum 0 _,, ... I .-<.,.. ·- ~ • • .) l, _of app~_ci_l , ..,,nap1~J,Y,, .. _ .. -l. -~ - ~ .., • . .to 'f .pet - .. ..~side .... ... .: L . 1 ! ..... . . ·~ ... . - • .1 •• ' ' - ,.PLJ. • t.~e_. :1~F~_f!5lon.p.{ .t.~~ PJ=ip.J:o_c~-.J.s ••, -· -si.:~1:Y:::.~Y-~(~~-~~~~bY.!fJ.let-::'rnt, ··t_h~.:A¥Js~9A ca.aj_. t~~~. B._:t,~;.;ef~j: PF~:.? 1ta~~p _l~l'ee.~_:,: ~ :S?.~,rg}-1.::nJlY, ~_,fpch_:·°-~,~~t,an~e~ 1 .'--the. Co}U'.t w9.1,44,:-?.~ -~!.1~~1 ip. h~~.pig_ ~-- ~--- - ···-- .. 8:P.Peal _..J ..., f .. l,D:. w}:li;C;h .Jtbr§! ~.c~sio:zi. ,q.o.rnp_J..R-inecl;~iAst~M- ],,ongp,rr-- e)d.$ts-..,., -•·..i........::-:).. ,,,.,.. ...... l_ \, ... -...,J:.~~ ... L~.- •• ~ .... ~ .L~..,... .. .. ,.,,.,. ,i., .I,..~ ...................... _\.,...4J-.L • l.,. .. ,_.. •• .• .1 \_.1_~ •••. , ,·, , - .. . . ~ . ..... . . ~:,,_~· i~1-~{ '!.'.;f; ..:J.. ~:. cififd :r1l· ~ ~- (;.~.?~.;: ... -·-·, ,.... •".;} / ;~ ,' ~- •, Jf. ----. :• ~-"' _r· ~ ,_,... ,. •·.:( ~- ;5 t/} t: ;: .;. ftP~rrJ-/%~l1'dtfii2':f~-ui.i~"~~ e,4iffll ~fo1[jcV:f:i'c •btfA\iff.l;fJrl fffl ift%~~1-.t·W ___ ,.,...----· trRf¾~fa?W:Sifir M. J+'¼~~.Af~:t. :&<foii,i ~~tl ·r~~;:;~cr)1?Ji'r:r~~#h1,. 1 --- ~W\R=t.i?.Ga._ .t::ps-,~ ..;.,tr-G.. 1'...'2~~-1,, ·2orrf3:-;:;.r i•lQ.,'!",'O :.5.a;mg:r.:~J'-•f!lJ£.r,-,,.p!-$~ .qJ!).<;;_ _.) f}Jb y<::ic.:.·re~CrL ·o·t + JJD :11~[--6:V. \..iOT.fL.J: .,~ <.;~6-97.,j ~~- 0.I'-G~~S"J{blj· --p.,·J. J.t_t,-i~ ,;.£dj•.l:f · 1 1 ELG::q:. L68DGO,.f -+:O t-.rL• tiJrnlJoi JSSLJ'.JGq COm186J 1 +JJe 01.qeL Aµ~·cp .j:'j'JG ,.:£1.tib!:fGCf) . oJJ JS• ~·sooJif:~~~ o~<:fl4'v.!~-~,.:gg 1~~f:p.il-,:fil'@2fs11cs.9~ ~J.T.q:...r,\r+JJ .. --· ... _.,... __ ,. ______ -or.,qe:(.E. ft,G_L.G.,'m!W fir1~'i~1JJr9&q3wrc<tF 6 Fk0 ·,Jjf}tgq),. opeGLAGq• GJJqeq mc1,;2 2µ0:r pe · :c.ccu1,~:;:..::cq I.,LOtil trr.cm:..e 2"'1~ J?,:;o• V2 ,.2JJOf>':.1J :rn b,n:. g~_J~g:bp O 6:i:, .f'jJG CJJG'"Jl.QGL. 8ffilTT!iO!J8 +J.iG "" q;rr.ruc':. .j:i:H:' :['r;f,,!.r-:u .CSL~ o~~ Sfi(.;JJ OMYL b~i... ps-1i.:rua rsn2dtfi1;.:;-f\kif ~if ;.,~'f1)J'J\.fifiJ2,JiKJ.i_:fd}f-r'tlf tf;;biJt.Jq +PG ,gi,bG'J'J :;-;:r q:r2bi1 1-:s :re LG80JAGCJ rre:ruli .q;•f· ·.:;r-.crJ.q~q {,\£T2 fi'i:!JJq~q qofl,Tr' J:iJ c.m.. A::f'GJt,' +}JC' OL(j~1.cl 1 .r:µo 'a.!'l"p':t0cf Ot +J-1€' :ibb.GITJ .ill \1 ~... ~;:t·--~& _T2m2G.a:.lm .Jo:+ 'Y rr:~!L;i::.":IG,q-fi~%tlG-::~.crJ,{1<tiJ..:llJ"bb ~~ ~ill~ r- . JJJ Y -.q_.J --m~'&t&fb ~N~J ~"t - • • J -t. -r . . J • ~G::t~lTftf':,.:~1j "r}11 ~'if~~jr~IJJt:'traiii~ifJtef~#~ fo15~£"''ift~i~-<m-J....!:· - 5 - exercise. It may well be that the decision by Jaji Kiongozi is not free from legal problems which were highlighted by the learned Single Judge of this Court in Consolidated Applications Nos~ 19 of 1999 and 27 of 1999 involving the same parties. Nonetheless, appeals to the Court should be founded on legally subsisting decisions or orders ·appealed ..against. In this case, there is none._ ___ Consequently, there is no legal foundation_for the appeal.to proceed. It is hardly necessary to poir:t out that Mr. Mkono's apprehension that Msumi, J .K. 1 s order of 5.3.1999 would be----executed against the first appellant unless it is vacated is, with respect, unfounded. The orders have lapsed, there is no more orders subsisting which can be executed. At any rate, Dr. Tenga___ on ...behalt ____ _ of the respondent clearly stated that the mode·of payment would be made in accordance with the terms of the Agreement (FPA) and the AI'bitratidn At.Jard and' not the ·order or" '5·.;"3.1999. W,ith r~gard;t?; t~e costs which it appears to us was the major concern .. i for • Mr. Mkono •. on behalf . of the first• appell.ant..,.this q.gain. is a.ware, costs _follow__ the eve21t •. ~ this. case, d€pending__on ~he . . ' , .... ~ ._..__·"'·' - ----- --. -· -------- e:qdin_g of t~e matt_er. ~ _th,is Co_~t,. t_he ~ingl~ _Jud~e _and the High Court, the question of costs will, as usual, be taken up before the Taxing 'Master' in accordance witi{"the 'applicable" rules.;.- For the _foregoing .rea~ons, the appeal ~s struck out with oosts. • ••/6 .. . ' .... • ·! ,•. , ,,. I !•.,, DATED at DAR ES SALAAM this 29th day of July.~ · 2002. A.S.L. RAMADHANI JUSTICE OF APPEAL D. z. LUBUVA JUSTICE OF APPEAL - ,c. ( ,· I 0ertify that this is a true copy of the original. ' ., . -;J~ . .j ~· ~....i._ ,.., l 'i ...... ,./\, ---~ t; ~_;_)~~~CE~-{-·_:/ ;'_--·/:;::~(,-- .•, _ .. ...-~.t,.!'• · ··-------·- -----.. ,i:•1~ ~r;>;aJ-Y•~~--3::-,0.0,.~·• ~~ :_,s-c-: C.~; Ci;: ) . y·, _- E)_1 ... '.!> .,,,_.,. ........ Ii'.... ~ _ . , , _ _ _ :.f,4,,_..; .......,5'j)71"