Q&A – 24 September 2012

Never ending case

I opened a recovery case at the Kinondoni District Court in Dar es Salaam. This is the sixth time the matter has been adjourned as the magistrate is indisposed, whatever that means. The person postponing it also has no sense of justice let alone a sense of calling cases on time. We go to Court and wait for hours before being informed that the Magistrate is not around. There is not one person there who thinks highly of this Court and it might be worth for it to be closed down and the premises be used by another government institution than a by a Court that is non-functional. Due to the delay I opened the same case at the Kisutu Court after being informed that this was a faster Court. The other side has filed preliminary objections that I cannot open this case here. What should I do?
OS, Dar

We are sorry to hear about the delays you have faced. If you think the administration of the Court is not up to standard, you can write an official letter to the Chief Justice (CJ) who can assign someone to look into this. These matters not always get reported to the CJ and if they do, things may improve.

Now to answer your question, our law prohibits filing of a suit when there is another case pending in a Court, with the same subject matter and same parties. That is provided under section 8 of the Civil Procedure Code in that no court shall proceed with the trial of any suit in which the matter in issue is also directly and substantially in issue in a previously instituted suit between the same parties, or between parties under whom they or any of them claim litigating under the same title where such suit is pending in the same or any other court in Tanzania having jurisdiction to grant the relief claimed.

It is likely that the preliminary objections will succeed and you will end up at the Kinondoni District Court. Your lawyer can guide you further.

Confiscation of title by bank

I borrowed money from a bank to purchase a vehicle. I have defaulted in paying the last 7 installments and the bank wants to seize my vehicle from me. Knowing that, I asked a friend of mine who banks with the same bank to borrow money based on one of my title deeds. When this friend applied for the loan, the bank saw my name on the title deed, rejected the loan and are not returning the title saying they will now proceed to sell both the car and the property under the title. Can the bank do this?
IE, Mwanza

We cannot answer this question without seeing your loan documentation for the vehicle. However with our experience of such matters, we think it is unlikely that you will have provided your title as a security in that loan vehicle agreement. If that is the case, the bank cannot hold onto the title let alone sell the property.

Your lawyer should write a demand note to the bank and if they do not cooperate, you can proceed to sue the bank. Withholding of your title can be construed as a denial to your property rights and you can sue for various damages.

Conversion of EPZ licence

I have invested at one of the Export Processing Zones (EPZ) in Dar es Salaam. With the current international market in crisis I intend to supply more goods in the local market only to be told by the EPZ authorities that I will lose my EPZ status. Please guide.
JE, Dar

The license you are holding was granted to you under the Export Processing Zones Act [CAP 373 R.E. 2002] as amended by Export processing Zones (Amendments) Act, 2006 which promotes exports. The focus of this law is also on the creation of international competitiveness for export growth in our country.

Changing business to be local oriented would patently defeat the very same purpose for which your license was issued. Should you wish to focus on the local market you will then not fit to enjoy the EPZ investor’s rights. Moreover the Export Processing Zones Act has under Section 7(2)(c) endowed powers to the Export Processing Zones Authority to cancel a licence where an investor carrying business in export zone assign to another person a license without obtaining the prior approval of the Authority.

In short you cannot convert to a local supplier over the quota of 20% of the local supplies that is allowed without losing your EPZ status.

Contaminated fuel, engine bursts

I bought fuel from a petrol pump in Mikocheni which resulted in my car engine burst. My fundi has confirmed that it was due to the fuel which was mixed with kerosene. I now found out that the particular petrol station is known for such activities. What should I do?
UR, Dar

We advise you to report this matter to the Energy and Water Utilities Regulatory Authority (EWURA) which is established by the EWURA Act, and is known for its efficiency.

Where a complaint is referred to EWURA and it appears to the Authority that you have an interest in the matter to which the complaint relates and the complaint is not frivolous, EWURA shall investigate the matter.

After following certain procedures as prescribed under statute, EWURA may make an order– (a) requiring a party to pay money; (b) requiring a party to supply goods or services for specified periods; (c) requiring a party to supply goods or services on specified terms and conditions; (d) requiring a party to pay the costs of another party or of a person appearing at the hearing or producing documents; (e) dismissing a complaint.

Your lawyers can guide you further.