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Tanzania decisions
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The High Court Commercial Division struck out a bank’s loan-recovery suit as premature because the employee’s Labour Division award was still under appeal.
The respondents were indebted to the appellant for the outstanding purchase price as there was no evidence of payment after the dishonoured cheque. VAT was properly paid due to joint ownership with a non-exempt entity, and the appellant paid the VAT to TRA. The counterclaim for VAT refund against the appellant was not sustainable.
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The respondents were indebted to the appellant for the outstanding amount as there was no evidence of payment after the cheque was dishonoured; VAT was properly paid due to joint ownership with a non-exempt entity; any VAT refund should be sought from the revenue authority, not the appellant.
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The High Court dismissed Scania Tanzania Ltd’s claim for unpaid truck purchase price and upheld the defendants’ counterclaim for USD 35,600 VAT paid by mistake.
The court held that the plaintiff proved the outstanding debt, but the 1st defendant was entitled to set off THz 42,000,000 as his contribution to the truck purchase, with interest, due to the bank's failure to provide notice before repossession and sale at an undervalued price. The defendants are jointly and severally liable for the balance after set off.
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