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Tanzania Judgment

TANZLII

The Registered Trustee Scanned

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The dispute was resolved by consent, with parties agreeing on the outstanding construction costs, recovery period, rent terms, refund mechanism, and mutual release of further claims. The consent judgment is binding and enforceable against either party in case of default.

Court disposition

dispute amicably settled by consent judgment

Orders

  • Outstanding construction costs as of December 2024 set at TZS 1,229,980,000 (USD 819,986.667)
  • Defendant to collect remaining construction costs from rentable space for 8 years (1 Jan 2025 to 31 Dec 2032)
  • Godown rental from Jan 2025: 1379.34 sq meters at 2.5 USD/sq meter, exchange rate TZS 1500
  • Annual rent from main building and godown: TZS 155,310,300
  • Plaintiff may refund part or whole outstanding amount in USD at TZS 1500 exchange rate, reducing tenancy period
  • If Plaintiff clears outstanding balance before tenancy ends, Defendant to vacate and handover premises
  • Upon expiry of 8 years, Plaintiff need not issue further notice to Defendant to vacate
  • Defendant to enter contracts with sub-tenants without affecting consent judgment
  • Each party to bear its own costs

02

Material facts

Parties

The Registered Trustees of Evangelistic Assemblies of God

Plaintiff Counsel: Ms. Josephine Asenga

Imalaseko Investment Limited

Defendant Counsel: Mr. Ally Mkali

Amounts and remedies

  • Outstanding Construction Costs as of December 2024: TZS 1,229,980,000
  • Outstanding Construction Costs as of December 2024: USD 819,986.667
  • Godown Rental Area: 1,379.34
  • Godown Rental Rate Per Sq Meter: USD 2.5
  • Exchange Rate: TZS 1,500
  • Annual Rent From Main Building and Godown: TZS 155,310,300

03

Procedural history

  1. Posture

    Land Case / Consent Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
Plaintiff claimed lawful ownership, breach of lease by non-payment, recovery of construction costs, vacant possession, rent arrears, monthly rent, general damages, interest, costs, and other reliefs.
Respondent
Defendant denied all claims, counterclaimed for unrecovered construction costs, declaration of no rent arrears, entitlement to use premises until full recovery, permanent injunction, payment of construction costs, commercial and court interest, costs, and other reliefs.

05

Court’s reasoning

  1. 01

    Tanzanian civil procedure

    Consent judgment binds parties and is enforceable as a decree

  2. 02

    Lease agreement dated 15 May 2008 and addendum 23 December 2013

    Lease agreements govern rights and obligations of lessor and lessee

06

Ratio, limits and disposition

Ratio decidendi

The dispute was resolved by consent, with parties agreeing on the outstanding construction costs, recovery period, rent terms, refund mechanism, and mutual release of further claims. The consent judgment is binding and enforceable against either party in case of default.

Court disposition

dispute amicably settled by consent judgment

  • Outstanding construction costs as of December 2024 set at TZS 1,229,980,000 (USD 819,986.667)
  • Defendant to collect remaining construction costs from rentable space for 8 years (1 Jan 2025 to 31 Dec 2032)
  • Godown rental from Jan 2025: 1379.34 sq meters at 2.5 USD/sq meter, exchange rate TZS 1500
  • Annual rent from main building and godown: TZS 155,310,300
  • Plaintiff may refund part or whole outstanding amount in USD at TZS 1500 exchange rate, reducing tenancy period
  • If Plaintiff clears outstanding balance before tenancy ends, Defendant to vacate and handover premises
  • Upon expiry of 8 years, Plaintiff need not issue further notice to Defendant to vacate
  • Defendant to enter contracts with sub-tenants without affecting consent judgment
  • Each party to bear its own costs

Source and reliance status

TANZLII · 31 March 2024

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Judgment reading view

Judgment text

The complete available source text.

Source document

TANZLII

Judgment· 31 March 2024

The Registered Trustee Scanned

IN THE HIGH COURT OF TANZANIA (LAND DIVISION) LAND CASE NO. 10212 OF 2024

THE REGISTERED TRUSTEES OF THE EVANGELISTIC ASSEMBLIES OF GOD....................................................... PLAINTIFF

VERSUS IMALASEKO INVESTMENT LIMITED............................. DEFENDANT

BY WAY OF COUNTERCLAIM IMALASEKO INVESTMENT LIMITED.............................. PLAINTIFF

VERSUS

THE REGISTERED TRUSTEES OF THE EVANGELISTIC ASSEMBLIES OF GOD.................................................... DEFENDANT

CONSENT JUDGMENT 3(}h October, 2024 L.HEMEDJ The Registered Trustees of EVANGELISTIC ASSEMBILIES OF GOD instituted the instant suit against the Defendant, IMALASEKO i INVESTMENT LIMITED for breach of lease of agreement. The Plaintiff was thus praying for judgment and decree against the Defendant as follows: "/' A declaration order that the Plaintiff is a lawful owner of the Leased Building and all other improvements made all that land known as Plot No. I situated along Nyerere Road, Temeke District in Dar es Salaam with a certificate of title No. 49531. ii. A declaration order that, by non-payment of rent as per the lease agreement duly entered as between parties, the Defendant is in fundamental breach of the lease agreement. Hi. A declaration order that, the Defendant has already recovered the construction costs as per the lease agreement entered on the 15h of May, 2008 and its addendum entered on the 23d December, 2013. iv. An order for the Defendant to yield a vacant possession of the leased building and handover of the said teased building to the Plaintiff. v. An order for the Defendant to pay the Plaintiff the sum of Tanzanian shillings three hundred fifty­ seven million eight hundred ninety-nine thousand four hundred ninety-three and sixty-one cents (TZS. 2 357,899,493.61) as rent arrears up to 31st March 2024 vi. Payment of the sum of Tanzanian shillings twelve million

seven hundred forty and one hundred (TZS. 12,749,100/=) as rent per each month from the date of filing of this suit to the date of judgment. vii. An Order the Defendant to pay the Plaintiff general damages as may be assessed by the Honorable Court as a result of the Defendants breach of the lease agreement dully entered as between parties. viii. Interest on the decretal amount at the rate of 12% from the date ofjudgment to the date of the payment in full. ix. Costs of the suit. x. Any other proceeding that this honorable Court may deem fit andjust to grant." The Defendant resisted the claims by filing the written statement defence refuting all the claims. She also raised a counter claim praying for judgment and decree as follows:- "a) That Respondent be ordered to pay Tshs 2,100,000,000/= being unrecovered costs... 3 b) For an order of declaration that Applicant has no any rents(sic) arrears and is entitled to use the demised premises freely up and until full recovery of the Construction costs. c)That Defendant be restrained permanently from embarrassing and disturbing the Plaintiff lawful occupation of the premises over Plot No.l, Nyerere Road in Temeke Municipality, Dar es Salaam or alternatively (sic) d) That Defendant be ordered to pay Plaintiff the construction costs to the tune of Tshs 2,100,000,000/=... e) Interest at the commercial rate of 25% for items (a) and (d)

herein above from May, 2024 to the date ofpayment in full. f) interest at the court rate for items (a) and (d) herein above from the date ofjudgment to the date ofpayment in full. g) Costs of this suit. h) Any other reiief(s) the tribunal (sic) deems fit andjust to grant." 1st Pretrial conference was held on 7th August 2024 and the parties were referred to the Mediation Centre of the judiciary to try mediation. At the Centre, Hon. Z. Mamma,J successful facilitated the negotiation 4 which led the parties to reach settlement agreement on 22nd October, 2024. On 30th October, 2024, the parties appeared before the trial judge to record their settlement. Ms. Josephine Asenga, learned advocate represented the Plaintiff while the Defendant appeared through one Mr.Ally Mkali, the Principal Officer. The terms agreed and presented by the parties for recoding for purpose of consent judgment and decree were as follows:- 1. That, the outstanding amount to recover construction costs as per the lease agreement dated 15th May, 2008 between the Plaintiff (The Lessor) and the Defendant (The Lessee) as to December 2024 is TZS. 1,229,980,000/= (One billion two hundred twenty-nine million nine hundred eighty thousand) equivalent to USD 819,986.667. (Eight hundred nineteen thousand nine hundred eighty-six dollars and sixty-seven points) 2. That, the Defendant will continue to collect the remaining construction costs from the rentable 5 space in the main building and the godown to the tune of the stated amount in paragraph 1 above for the period of eight years (8) from 01st January 2025 to 31st December 2032.

3. That, the parties reconciled that from January 2025, the rental space charged in respect of the godown is 1379.34 square meters at the rate of 2.5 USD per sq with the exchange rate of TZS.1500/=.

4. That, the annual rent to be recovered from the rental space in the main building comprises of four floors and the godown areas will be TZS. 155,310,300/= 5. That, the Plaintiff at any time within the remaining tenancy period is at liberty to refund part of or the whole remaining outstanding to the Defendant who shall deduct the said amount from the outstanding balance. Whereas the said amount will automatically reduce or completes 6 the tenancy period, the refund shall be in US Dollar with the exchange rate of TZS. 1500/=.

6. That, in the event the Plaintiff managed to clear the outstanding balance of construction costs before the end of the tenancy period, the Defendant shall vacate and handover the leased premises to the Plaintiff upon the paying the outstanding amount.

7. That, upon expiration of eight years (8) the Plaintiff shall not be required to issue the Defendant further notice to vacate the demised premises.

8. That the Defendant shall enter into contracts with sub-tenants in a manner that shall not affect execution of the Deed of settlement.

9. That, the signing of the deed of settlement will mark the dispute herein final and conclusive settled and there shall be no further claim against each party in respect of the leased 7 premises in the main building in plot no. 1 with a certificate of title No. 49531 or the godown handed over to the Defendant by the Plaintiff to recover construction costs.

10. That, the parties agreed that this Deed of Settlement shall constitute a consent Judgment binding both parties and a court decree be executed against either party in case of any default of the terms herein.

11. That, as the parties have resolved their dispute amicably, each party has to bear to its own costs. Having recorded the above terms presented by the parties, this court do hereby enter the consent judgment and makes the following orders:- 1. The outstanding amount to recover construction costs as to December 2024 is TZS. 1,229,980,000/= (One billion two hundred twenty-nine million nine hundred eighty thousand) equivalent to USD 819,986.667. 8 (Eight hundred nineteen thousand nine hundred eighty-six dollars and sixty-seven points) 2. The Defendant to continue to collect the remaining construction costs from the rentable space in the main building and the godown to the tune of the stated amount in paragraph 1 above for the period of eight years (8) from 01st January 2025 to 31st December 2032.

3. From January 2025, the rental space charged in respect of the godown is 1379.34 square meters at the rate of 2.5 USD per sq with the exchange rate of TZS.1500/=.

4. The annual rent to be recovered from the rental space in the main building comprises of four floors and the godown areas to be TZS. 155,310,300/=.

5. The Plaintiff at any time within the remaining tenancy period is at liberty to refund part of or 9 the whole remaining outstanding amount to the Defendant who shall deduct the said amount from the outstanding balance. Whereas the said amount will automatically reduce or complete the tenancy period, the refund to be in US Dollar with the exchange rate of TZS. 1500/=.

6. In the event the Plaintiff manages to clear the outstanding balance of construction costs before the end of the tenancy period, the Defendant to vacate and handover the leased premises to the Plaintiff.

7. Upon expiry of eight years (8) the Plaintiff shall not be bound to issue the Defendant further notice to vacate the demised premises.

8. The Defendant to enter into contracts with sub­ tenants in a manner that shall not affect execution of the consent judgment.

9. Each party to bear its own costs. io Order accordingly. 11

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