TANESCO and AG v Bagamoyo Industries Ltd consent judgement

IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION) AT DAR ES SALAAM COMMERECIAL CASE NO. 51 OF 2023 BETWEEN TANZANIA ELECTRIC SUPPLY COMPANY LTD..……1ST PLAINTIFF ATTORNEY GENERAL…………………………………….2ND PLAINTIFF VERSUS BAGAMOYO INDUSTRIES LTD……………..………..…..DEFENDANT CONSENT JUDGEMENT Date of last order: 03.7.2023 Date of Judgement: 13.7.2023 AGATHO, J.: This consent judgement emanates from deed of settlement dully signed by the Defendants and Plaintiff presented for filing in this court on 3rd July, 2023. TANZANIA ELECTRIC SUPPLY COMPANY LTD, the 1st Plaintiff herein, is a National power Utility Company incorporated in Tanzania under the Companies Act (CAP 212 of 2002) vested with duties of generating, transmitting, and supplying of electricity in Tanzania. The 2nd Plaintiff, the ATTORNEY GENERAL is the Chief Advisor to the Government of all legal matters and guardian of the properties of the Government of the United Republic of Tanzania together with its institutions. The defendant, BAGAMOYO INDUSTRIES LTD, is a Private Company with Limited liability registered under the laws of United Republic of Tanzania. On the 28th day of April, 2023, by way of summary suit the Plaintiffs instituted Commercial Case No. 51 of 2023 against the Defendant seeking the following reliefs. i. An order for payment of TZS 72,382,009.39 being principal sum plus interest arising from accumulated electricity bill arrears from 16/06/2016 to 20/03/2023, ii. An order for payment of interest at commercial rate of 30% of (i) above from the date of instituting this summary suit to the date of delivery of Judgment, iii. An order for payment of interest at the Court rate of 12% on the decretal sum from the date of Judgment to the date of full payment, iv. An order for payment of general damages to be assessed by this Court, v. Costs of this suit be borne by the Defendant, vi. Any other order(s) that this Honourable Court may deem fit and just to grant. The Defendant herein filed an application for leave to defend the summary suit vide Miscellaneous Commercial Application No. 51 of 2023 and the same was withdrawn on the 20th June, 2023 to pave way for this out-of-Court Settlement. The parties successfully reached an amicable settlement of their dispute. And on 3rd July 2023 they filed their deed of settlement. They prayed that the deed of settlement be recorded as a decree of the Court capable of being executed in accordance with the laws of the land. The court has gone through the deed of settlement dated 27th April, 2023 and in terms of under Order XXIII Rule 3 of the Civil Procedure Code and Rule 2 (2) of the High Court (Commercial Division) Procedure Rules, 2012 as amended in 2019. It is satisfied that the same was mutually consented. In the view of the above, the deed of settlement is hereby recorded and adopted to form part of consent judgment as prayed by the parties on the following orders: i. That the Defendant herein admits to pay the claim of TZS 35,606,671 as the principal amount of the outstanding electricity bill and the 1st Plaintiff waives the accumulated interest to the tune of TZS 31,775,337.75. The Defendant shall TZS 5,000,000 as part of the accumulated interest. ii. That the Defendant up to 30th of June, 2023 has paid a total amount of TZS 21,442,690/=. iii. That the remaining amount will be paid by the Defendant in 3 equal instalments up to 30th September, 2023 by the following schedule. a. TZS 4,721,335 on 30th July, 2023 b. TZS 4,721,335 on 30th August, 2023 c. TZS 4,721,335 on 30th September, 2023 d. TZS 5,000,000 on 30th October, 2023 iv. That by executing this deed of settlement, the Plaintiff herein waives all other claims for interest, general damages and costs arising from the outstanding bill and this suit, v. That in case defendant defaults to pay any of the instalments above, the Plaintiffs herein shall be entitled to invoke execution proceedings of the remaining unpaid principal amount and part interest together with accumulated interest of TZS 31,775,337.75, By this consent decision, therefore, this court hereby declare that parties hereabove have resolved their dispute and this suit is marked settled on the compromise of the parties, as evidenced by the terms agreed under the said deed of settlement. For the reasons aforesaid the deed of settlement signed by the parties and filed in this court constitute the judgment and decree of this court. It is so ordered. DATED at DAR ES SALAAM this 13th Day of July 2023. U. J. AGATHO JUDGE 13/07/2023 Court: Judgment delivered today, this 13th July 2023 by Hon. Minde, Deputy Registrar in the presence of the parties. U. J. AGATHO JUDGE 13/07/2022