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Tanzania Judgment

TZHC

20000830 TZHC Dar es Salaam

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Source document

01

Holding and result

The trial court lacked jurisdiction to attach the vessel as it was no longer property of the judgment debtor at the time of proceedings, and the applicant was not a party nor given opportunity to be heard. The proceedings were a nullity due to procedural defects and lack of proper parties.

Court disposition

application allowed

Orders

  • Entire proceedings in Employment Cause No. 264 of 1997 quashed and set aside
  • No order as to costs

02

Material facts

Parties

TRAMICO INVESTMENT COMPANY LTD

Applicant Counsel: Mr. Duncan

KAHIZ ILT BAHIGANJI

Respondent

DEN-TAN RESOURCES LTD

Judgment Debtor

03

Procedural history

  1. Posture

    Civil Revision / Ruling

04

Questions and positions

Legal issues

Party arguments

Applicant
Applicant argued the vessel was not property of the judgment debtor at the time of attachment, ownership had transferred prior to proceedings, and applicant was not a party nor given opportunity to be heard. The trial court lacked jurisdiction as the vessel was sold under court order and the receiver/manager was not joined. Leave of the High Court was not obtained as required.
Respondent
Respondent raised preliminary objections regarding time bar and improper citation of legal provisions, argued seaman's lien persists despite ownership change, and questioned the applicant's reliance on multiple statutory provisions.

05

Court’s reasoning

  1. 01

    Section 121(b) of the Merchant Shipping Act 1961

    Jurisdiction to entertain claims over vessels sold under court authority lies exclusively with the High Court.

  2. 02

    General principles of civil procedure

    Ownership transfer affects attachment proceedings; property not belonging to judgment debtor cannot be attached.

  3. 03

    Section 9 of Bankruptcy Act Cap 25

    Leave of court is required before instituting proceedings against a party under receivership.

06

Ratio, limits and disposition

Ratio decidendi

The trial court lacked jurisdiction to attach the vessel as it was no longer property of the judgment debtor at the time of proceedings, and the applicant was not a party nor given opportunity to be heard. The proceedings were a nullity due to procedural defects and lack of proper parties.

Obiter and limits

  • Citing multiple statutory provisions is not a fatal mistake if enabling provisions are cited.
  • Seaman's lien may persist with ownership change, but evidence is required to establish ownership and lien applicability.

Court disposition

application allowed

  • Entire proceedings in Employment Cause No. 264 of 1997 quashed and set aside
  • No order as to costs

Source and reliance status

TZHC · 30 August 2000

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Judgment reading view

Judgment text

The complete available source text.

Source document

TZHC

Judgment· 30 August 2000

20000830 TZHC Dar es Salaam

JN THE HIGH COURT OF TANZANIA A'r DAR ES -----.-.-:-e SALAAM .,.,,-., F·•v CIVIL REVLSION Neic1 · 22/02 TR.AMICO INVESTMEN''IB COMPANY LTD _Versus·· · , KAHIZ ILT:::T BAHIGANJ'i & ANOTHER RESPONDEN'.11 .. ..... , .. ; __ .....,._....~ RULING -~-:;---.. ~· This .is a revision in which this ··court is being asked to tmllify a warrant .of a-rt:b~.e::.:::~t issued- against. a vessel' named m\' BANUSSO: IJ; -~ .· the ground that· -the vessel ·is the property of the -applicant who is. no't. ~. . . . .... a party to the proceedings which led -to the attachment order. . ... . - , . . ... ·~- . - •, . - The applicant is TRAMICO JNVESTMENT COMPANY LlMITIID~ One ·!Wiizil.$ge ' B ~ a filed a chamber 'application under S_ection 12 (2) o~ the Marchant Shipping Act and Section 133 of the Employment .Ord:mance Catt' ,, _, . , ;66 and Section 95 ·of the Civil Pl-QCedure Code 1966 prayfug fo~ ··p-,yment .. . ··-" ' . . . . .. ..· .· . . . . . . - X. •.•: ... _cf wnges.. The Mruioging J>:lr~i-or · DEN...TAXI RESOURCES LTD in th~ chamber ~--~ ... - ·/ · applictltion .is ~ r~~dent._ ibe applicetion ws :filed in court on ··.. .. .. ~ ... . 19/12/~+ ~ .. Kalizilt\ga Bohigone :i.s··the ·respondent in this revisional . ' .' .. · : · ~is a~licction .in the subord~t~ court wns heord e,:-p!lrte. A t t ~ to hove ttus exparte doer~ set aside w!la not euceees:f'ul~ It was in the oo~tton ·of the decree tho·~

the vessel which -i:.:>h::.c the subj9ct ~tt-er of theao proceedings \-JM ~.:t:tce::-::a~.- Objection procedings were filed in tb&_ subor-dincite court to c~D.llenge the attachmi;nt but were diomi.s~a., ,i.· Tho d;.sm~l of -ttze o1)Joc~io• 1"'-·~c..:).d1t,g,, ie. 3'1hot h"S led to the f'U.'-blg_ of this re~sion. ~ r~ion hne l>wGn-filed under ~ ( 1 1 1 $ 44 (1) ·of the Mogistratas. Courts Act 1984 as "811 zu, &c-t&m ~{1) ond Secti.<»:1 95 -o~ the Civil ~edur-e Code 1966 os well .'.l6 Order XXI rtll.e 24 (2) ond Rule 57 of the Civil Procedure Code, 1966. The opplic[.lnt is being reprea~ted 'Ly Mr •. Dutx:on. learned A.dvocete. ~ peepon.dont- .Lt: ':Jot -rep1:QSe1-:i·ad. 'l'he respondent :;.~:t.r..<:>.t ~~·,.,"? -1,-..,,,-1 ... ,,,, ,.,, ... ~t" .of -Objection. The portiea· filed written subrnissio:it for !:ind o.gtdn"'t the opplic""tion under the. diz&etion of this court. i]J29 S!lme with the prelimin~ry objectic1~-, APPru-ently, the !'espondent ·btls n_o't filed ~-- repl.y to the preliminory obje~ llOr a r ~ to- the ~in application. Although he h~s filed tl .... t,'t • • • • /2. .. ~ " ~- 2 - . t-.1.me · chtlmbel:' ,CLpplicati.o;i seeking for ~ension o / to· file the smne. ii; is not worthy ol.lowing the .applicotioi1 to proceed to .fulJ.heoring of the chomber. :. application beco.use ot the enc" of the d~y it migltd:t not ll1tet' th& out ..1 · come of the re,rision. This view

is being expressed ofter e thorough study of the proceedings in the trbl court os well us the· iresent txppliootion ond the submissions filed •. It is important for me to mention thot the reseorch done by the porties is o.pprecio.ted, I tho.nk them for their efforts. Their submission• is ·of· ossistonce in. the disposal of this application. The first point of prelimin~ry objection is that. the etpplice-tion is ·time bo.rred. ·Htrnng i~spected the record of the trial court and the time when the revision was filed, I will sc.y that this objection h~s merit.no The ruling in which this re:vision is being I'l'&f~~ ~ oelivered on 13 February 2002. This rev:f.sion ~s filed on 19th Febru~ 2002. While I o.pprecio.t_& the submisaion made by the respondent on this ');loint, the truth.of the'motter is thot he is mistoken;, Mr. Duncan submitted·C'Oft'ectly ' ' tho.t the opplico.tion ~~s filed on the s:brth doy ofter delivery of the ruling. It wos ·filed W!'l:·thin time. ' ' Rego.rdi.ng. the second point of -0bjection,. .. the Nspondent ~ to be concerned why Mio.., Du.Dean cited both Section 79 (1) of the Civil ProceduN Cod~ 1966 ond Section 44- (1) of the Eog:istratae Courts Act~ His· opinion ,.. -~ ~ .Mr. Duncan shou·.1.d heve ~n ap9ci.tic on which l)rorlsion of the liJ.w he is r~~~ rQther ~n ·quoting both of them. In other words the llpplico.nt ought to so.y whether she is relying on

Section 79 (1) of the Pivil ..Pro~e~_e Code ·1966. or .Section· ~-(1) of .. the Mo.gis~ot&s·, 'Courts Act. Mr.Dl.1::zc.:i.!.,~ response is deto.iled .. However the point _raised by the respondent hS;S eubsto.neQ-giv-entbA- di.etinct1.CRJ. fflBti:og in the eirCUJnstQn.Cee o:f tll.e .application of the two provisions. The· provision o.f &ceirio~ '?9' {1) qf the Civil Procedure .Code 1966 are restrictive.· They Ql'e limited to jur:lsdic·don th~t is octing without jurisdiction or \ . exercising ~~ct.1.~~ -i-2 -~1.~-s-~'iob 44 (1) is broodert covering ~ ~ o a . nfl&-ctins ~rror TIWtit1r1a·1 '4f'O i ~ .. .._.,..__,tonc,es ·of ·the ct\Se invDl,ving inJustice. G:.ven t4 diat1nctton it is imponori1.··-- ~ o.pplicllnt to point 1:mt .apoci.r-ic~lly the prov:1~i◊u 1;.1hi-ch irs being rel,iod upon rot~ ~'.~ doing o. guess work. f\~l the s~me1the ••.i:~of 1:tic provisions is not o. fatal raistD.ke w~rrcmting the dismissol of the applic.?.tion. Regarding the citing of Orders XXI Rule 24 (2) o.nd Rule 57 I mu~t say they were q~oted out of contest"~I.,ns fer ~s these previsions ~re eono.er~d. ilhey hove no r.elotionshi:P at all with these -pr,oc~inga ~ e ....../; ,... I apprevic.te the submission· m.?dc by Mr. Dunscan· on this aspect my feeii'ngs tire that they are tc '.-~lly irrelsvo.nt to these revisional proceedinga. 1hey Add nothingtlr]. the applic~tion which is before this court np0rt

from r~flecting some .doubts ~~n the tidvoeote on which provisions of the. ,law are npplicnble under the circumstances which led to the filing of the application. All the some, d.t:i.ng them does not moke the npp1icetion fato1. :po.rt:tcularly wher'e the onnbling provisions for filing !I revision h~ve been cited. The respondent hos also roised rui argument to the effect th~t under Section 112 (1) of the '·.:ercl.::-'.:::.t·. Shipping Act 1967• the seil mens. lien over . . . . . ! , ll vessel .does ·not ch,nge with the chonge of ownership of the "O'~~. n-ie · answer to the argument is simpie. It oll depends how the ownership ptlSSee. In .:iny event this is not a motter which con be argued by prelimineiry . objection because. evidence will .be required to show w4c, is the owner ond how the ownership wos ocquired. &ving onaly-8ed the arguments given in respect of the prelimin,ry objection, +mus·t. concluc39' by saying that the prelimim:iry ·objection h~s · no me:l"it~ It is dismissE,.i.o The next step is .to look at ~he opplication for revision.~. Dunotln eubmi tted thot by tire -ti~ e -eniployment Couse No. 264 ·~f 199? we.a. d~f~r.; mined, the vessel BANU8SO II ~ ~ longoor the property of the judgment·· debtor{DEN • '.L¼N RU,OW\tfil3) • !he reason gi-ven is th~t DEN -TAN RESOURSES wo.s· involved. in !Ugh Court ~ivil Case No. 106 of 1996 which_ led th~ ownership of the vessel to

poss to Industuru.izo.tion Fund for Developing · Cotu:if.:r~ "!I.hereafter, the vessel tros put· ~der the Receiver/Monager. ·. (Mr •. N-od Mlcono) • Thoe vessel was sold to Tongol Fishing Company· ond ownership woe tronsferred to it on 24th February• 1997. At a leter stage, on 20th December• 2000 the npplicont bought the vessel from ~ Fi. shing Company Limited. Mr. ~ t . e eubmi..ci.sion lihic1:-. ie co:rr~ct is tho.t the sequence of events show t/l:it ot the time tha 0ase wo.s filed in the trfol court on · 19th .Dooember, 1997 D:EN-Tf;N REBOt'TlClIB LIMITED wca no longer the owner of the vessel JM.NUSSO II. There M:ts no justifico.tion for the tri~l court Jiismieew the objection proceedjnes. The sequence of the events cle~rly show th,'.'.lt the_ ves.1el ·w~s sold even before the filing of the opplic!11tion by the c?ecree hol<1 er-. 'Ihe dismissal oceossioned injustice to the o.pplie-,::mt beco.use h ~r property was be~pg ottachec' 111hile she was not o port, to the proce-9Ungs and she hod not even been given th& _opportunity to be heard$ .dllt•······/4 - 4 - - In addition. Mr. Dunc.on so.id that since the vessel wos. initittlly aold by on order of the courts then the trial court had no jurisdicti~ to entertain the cose. He cited Section 121 (b) of the Merih~nt Act 1961,. orguing thnt exclusive jUrisdiction is conferred to the High Court where a seaman or apprentice cl~ims for recovery of wages w}Jere the ship i~ sold uhc1er the authority of the court. This c:outt tokes judicn1 notice of the consent order m~de in the High Court Civil CtlBe No. 106 of 1996, between !L~.;:,1,AN R:ElS£?.~~TD,_,YS -~

INDUSTRIALIZATION .._...,,:f._........... ==-.,.,·FT.nm FDR DEVElOPlliG ....... r-......,.__... COUNT:CRIIB. There wos t1· Memorendunt ~---...,_...~~_.....,. of sttlement by the J;):lrliaa. Under Par~ 5, the IFU w?ls given !In ?1Ut6motic right of possession of the ,vessel (B!-iNUSSO II) without recourse to court or o.rry other legol a,c;·tib"m if the DEN .. Tf~N RESOURCES def!!ulted to honour the repayment schedule. It .appeors that DEN - T:f.1N RESOURCES defilulted end so IFU" 1rool( po,ss.e.ssion of the vessel. Subsequently DE!f. TAN RESOURCES was put under receivership. and the vessel (BANUSSO II) \-ms sold t~ Tongol Fishing.. Company. Given the circurno"~:uces under .which t.he ownership of the vel=!S&l. pttssed from DEN ... TAN RESOURCH{ LTD to Tongol Fishing Compony ~nd then to the ~pr,licont, there wM no justification c.t nll for the trial mngiatrnte holding thot the sole wos intenced to p~von-t e:x-ewtion. b ~ of the v&ss&l shows thnt at the time the decree holder filed the case in the ~ court, the vessel w~ no longer the property of the judgment debtor• k The other irrogu.larity :pc~ -out by~. Duncan fa thot the triol c;ourt lt\cked juriedi,cirion to .entertain the, cDae which wos filed by the decre~ hoJ.det"Me triol court because the judgment debtor wos under ~¥ePbip of I'1kono ~nc Compc.ny Advocates. Mr. Dunc.tm submitted correctly th,t the Reveiver ond Mr.-nnger

wos not joined into the proceedings ond the suit wos filed without first obt~in4ng the leove of the H~.CO\l!'t ~ ~~gu:irQd b:r 8.eetion 9 of· the B o . ~ 01--~e - Cl:tp 25,. Th& defects given obove i:=: on illuetrm;ton of the ~justice wl.,:i.ch- -,,as ~ by tho tri!\l court. 'Ihe trfol court h::.d no _j,.t,.iAc,J.<.,ti..Qll. to e12.terl'o.in the ccne which wns filec~ by the decree holdert ~is is a matte,;- which falls sque'.r~ly undt:r the provisions of Section t) (1) Qf the CiYil Procedure Code 1966. Since it iP o:r.ly the objection proceedings which we1·r_. ch:tllonged, thie court will suo mote revise the whole proceedings in the tri:il court under Section 44 (1) of the Ifogisirate Courts Act, 1984 hec~use thoy oro ~ nullity. I qu,osh and ~et aside the entire proceedings in :Employment Cm>Sa No 1 264 of 1997. !lo orcler of costs, ~ , NoP.Kimriro

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Authorities

Authorities used by the court

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

High Court Civil Case No. 106 of 1996

Case cited

Merchant Shipping Act 1961 Section 121(b)

Legislation

Legislation referenced in the available case record.

Merchant Shipping Act 1967 Section 112(1)

Legislation

Legislation referenced in the available case record.

Civil Procedure Code 1966 Sections 79(1), 95

Legislation

Legislation referenced in the available case record.

Magistrates Courts Act 1984 Section 44(1)

Legislation

Legislation referenced in the available case record.

Bankruptcy Act Cap 25 Section 9

Legislation

Legislation referenced in the available case record.

Employment Ordinance Cap 66

Legislation

Legislation referenced in the available case record.

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