vita foam t ltd vs vinayak traders ltd others 2019 tzhccomd 136 5 april 2019

vita foam t ltd vs vinayak traders ltd others 2019 tzhccomd 136 5 april 2019

The 1st defendant breached the MoA and settlement agreement by failing to pay for goods supplied. The 2nd and 3rd defendants, having executed personal guarantees which were not revoked, remain personally liable for the outstanding debts. The settlement agreement did not discharge the 2nd defendant's liability under the MoA, as the guarantee covered all obligations arising from or in connection with the MoA. The plaintiff is entitled to the outstanding amount, interest, general damages, and costs.

Citation
vita foam t ltd vs vinayak traders ltd others 2019 tzhccomd 136 5 april 2019
Parties
Plaintiff: Vita Foam (T) Limited; 1st Defendant: Vinayak Traders Limited; 2nd Defendant: Samik Rajani; 3rd Defendant: Sanjay Gandhi; 4th Defendant / Third Party: Ayubu James Chonja
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
5 April 2019
Procedural Posture
Commercial Case / Ex Parte Judgment After Failure of Some Defendants to File Defence and Non Appearance of Others at Hearing
Outcome
Judgment for the plaintiff against the defendants jointly and severally
Legal Topics
Breach of Contract, Personal Guarantee, Company Law, Settlement Agreement, Directors' Liability
Source Language
English
Commercial Law Contract Law Breach of Contract Personal Guarantee Company Law Settlement Agreement Directors' Liability

Case Brief

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Parties

Vita Foam (T) Limited

Plaintiff

Vinayak Traders Limited

1st Defendant

Samik Rajani

2nd Defendant

Sanjay Gandhi

3rd Defendant

Ayubu James Chonja

4th Defendant / Third Party

Procedural Posture

Commercial Case / Ex Parte Judgment After Failure of Some Defendants to File Defence and Non Appearance of Others at Hearing

Legal Issues

  1. 1 Whether the plaintiff supplied goods to the 1st defendant as per the MoA
  2. 2 Whether the 1st defendant honoured the MoA
  3. 3 Whether the defendants jointly and severally fulfilled the settlement agreement

Ratio Decidendi

The 1st defendant breached the MoA and settlement agreement by failing to pay for goods supplied. The 2nd and 3rd defendants, having executed personal guarantees which were not revoked, remain personally liable for the outstanding debts. The settlement agreement did not discharge the 2nd defendant's liability under the MoA, as the guarantee covered all obligations arising from or in connection with the MoA. The plaintiff is entitled to the outstanding amount, interest, general damages, and costs.

Court Disposition

Judgment for the plaintiff against the defendants jointly and severally

Orders

  • Payment of TZS 84,367,007 as outstanding settlement amount
  • Payment of interest at 2% per annum on the above from date of settlement agreement until payment in full