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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 Court of Appeal held that cancellation of JL Consultancy’s registration justified termination, but it was still owed the unpaid 30% balance for October 2017.
The suit was filed prematurely as both the plaintiff's claim for loan repayment and the defendant's set-off are contingent on the outcome of a pending appeal before the Court of Appeal. Granting reliefs at this stage would contravene principles of natural justice and equality before the law.
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The Court of Appeal held that the bank had no duty to avalise the bill, allowed recourse on dishonour, and ordered payment of the balance after set-off.
The High Court found both parties breached their beverage supply arrangement, upheld part of each side’s invoices, and ordered MMI Tanzania to pay the net balance to Bevco.
The High Court Commercial Division dismissed a landlord-tenant rent claim after finding the defendant had proved the rent was settled through a set-off arrangement.
The defendant breached the banker-customer relationship by withdrawing the entire USD 13,000,000.00 from the plaintiff's account after the expiry of the deed of undertaking, which only authorized deductions within a specific period and up to 40% of TANESCO payments. The defendant was only entitled to deduct 40% of the received amount, not the full sum. The plaintiff failed to prove loss of business or entitlement to claimed compensation and interest beyond the refund and court interest.
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The High Court held that the buyer, not the supplier, breached an oral cement supply contract by cancelling without a stipulated delivery time and dismissed the suit with costs.
The High Court struck out Exim Bank’s commercial suit, holding that the claim centered on set-off and distribution of decree proceeds and belonged before the executing court.
The High Court dismissed an appeal seeking set-off of a bank loan against shares held in a related company, finding the companies separate legal entities.
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