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Tanzania decisions
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The plaintiff proved the existence of a valid distributor revenue sharing agreement, the defendant's breach by non-payment, and compliance with procedural requirements for default judgment. The court found the defendant liable for the outstanding sum, contractual interest, general damages, and enforcement of security as per the agreement.
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Court of Appeal of Tanzania held that JRT and its guarantor remained liable on a secured loan, but KCBL must account for seized but unsold assets.
High Court injunction ruling on seized vehicles under a hypothecation agreement. The court held the creditor could not sell or impound the vehicles without court intervention.
The agreement between the parties created only a charge or pawn, not a mortgage or pledge, and did not empower the respondent to seize and sell vehicles without court intervention. Since the respondent was not in possession and no contractual clause allowed extrajudicial seizure and sale, only the court can enforce such rights. Temporary injunction is granted to restrain respondents from disposing or impounding vehicles pending determination of the main suit.
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The High Court quashed an ex parte injunction in a loan-security dispute for lack of notice and insufficient cause, and sent the matter back for fresh hearing.
The Court of Appeal of Tanzania reinstated a counter-claim, holding it should have been rejected, not struck out, and that it disclosed a cause of action.
The Court of Appeal held that a counter-claim should be tested on its own. It set aside the order striking it out and sent the matter to trial.
The Court of Appeal of Tanzania allowed an appeal against striking out a counter-claim, holding it should be rejected if defective, and that merits cannot be decided on pleadings alone.
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