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High Court revises a land execution ruling, holding that the applicant owes only the unpaid balance of a consent decree and that indefinite civil imprisonment was unlawful.
High Court granted an execution application and ordered civil detention of two judgment debtors unless TZS 40 million and a backhoe were delivered within 14 days.
The High Court lifted the corporate veil of the respondent company and held its managing director personally liable for a neglected decretal debt.
The appellant failed to prove that the respondent willfully defaulted on maintenance payments or that all other enforcement mechanisms were exhausted; thus, civil imprisonment was not justified and the trial court's dismissal was correct.
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The liquidator failed to perform his statutory duty to pay the sole creditor but the proper remedy is removal under Section 359 of the Companies Act, not civil imprisonment. The application for committal to civil prison is refused as the applicant did not pursue the specific statutory remedy available.
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A director who was not a party to the original suit and against whom the decree was not issued cannot be detained as a civil prisoner for the company’s debt unless the corporate veil is first lifted by a separate application establishing special circumstances.
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The High Court set aside a civil imprisonment order against a company director, holding that execution for a company debt required first lifting the corporate veil.
The judgment debtor failed to appear and has evaded execution of the decree; therefore, under Order XXI Rule 35(2) of the Civil Procedure Code, the court is empowered to order his arrest and detention as a civil prisoner.
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The Court of Appeal held that the detention order was not interlocutory and leave to appeal was not required, so the strike-out application failed.
Applicant discharged burden by showing respondent's commitment to pay via deed of compromise, respondent defaulted while having means, thus veil of incorporation is lifted and directors are liable for civil imprisonment.
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