TANRUS Investment Limited t/a Dar Es Salaam Serena Hotel vs Sophia Mketo (Civil Application No. 2278 of 2025) [2026] TZCA 439 (27 April 2026)
Judgment
IN THE COURT OF APPEAL OF TANZANIA AT DODOMA CIVIL APPLICATION NO. 2278 OF 2025 TANRUSS INVESTMENT LIMITED T/A DAR ES SALAAM SERENA HOTEL.......... .............................. APPLICANT VERSUS SOPHIA MKETO...................................................................... RESPONDENT (Application for stay of execution of the Judgment and Decree of the High Court of Tanzania (Labour Division) at Arusha) ( Mganga i iO dated the 29th August, 2023 in Labour Revision No. 124 of 2023 RULING ia h & 27t hApril, 2026 MWAMPASHI. J.A.: By way of a notice of motion predicated upon rules 11 (3),(4), (4A), (5), 48 (1) and 49 (1) of the Tanzania Court of Appeal Rules, 2009 (the Rules), Tanruss Investment Limited t/a Dar es Salaam Serena Hotel, the applicant herein, has filed the instant application for stay of execution of the decree of the High Court of Tanzania (Labour Division), at Dar es Saiaam, in Revision Application No. 124 of 203, dated 29.08.2023, pending the hearing and final determination of Civil Appeal No. 971 of 2025. The application is supported by an affidavit affirmed by Ms. Bilala Kittapa, the applicant's Assistant Human Resource Manager.
When the application was called on for hearing before me, Messrs. Deogratius Tesha and Godfrey Ngassa, both learned advocates, represented the applicant and respondent respectively. At the outset, before the hearing could commence, Mr. Ngassa intimated that he was not resisting the application. The application having been conceded, the notice of motion and the supporting affidavit were adopted by Mr. Tesha who, without more, prayed for the application to be granted as sought in the notice of motion. Notwithstanding the concession by Mr. Ngassa, I still have an obligation to determine not only whether the conditions warranting issuance of an order of stay of execution of the decree have been complied with but also whether the application is competent. Regarding the competence of the application, I am satisfied that the application is competent. The application is by way of a notice of motion and is supported by an affidavit as required by rules 48 (1) and 49 (1) of the Rules and it is accompanied by copies of a notice of appeal, a decree, judgment and a notice of application for execution of the decree as required by rule 11 (7) of the Rules. On whether the conditions for issuance of an order for stay of execution have been complied with or not, it should firstly be noted that
the Court derives its powers to order stay of execution of a decree or order from rule 11 (3) of the Rules under which it is provided that: "11(3) In any civil proceedings, where a notice o f appeal has been lodged in accordance with rule 83, an appeal, shall not operate as a stay o f execution of the decree or order appealed from nor shall execution of a decree be stayed by reason only of an appeal having been preferred from the decree or order; but the Courts may upon good cause shown, order stay of execution of such decree or order". [Emphasis added] According to rule 11 (3) of the Rules, as reproduced above, issuance of an order of stay of execution of a decree or order, is discretionary and it is upon good cause being been shown. Further, under rule 11 (4) and (5) of the Rules, three conditions must be fulfilled before an order for stay of execution of a decree is issued; One, the relevant application must be brought timeously; two, it must be established that substantial loss may result to the applicant if the application is refused and three, security for the due performance of the decree or order as may ultimately be binding upon the applicant should his appeal fail must be given. The three conditions listed above must be cumulatively satisfied. See - National Housing Corporation v. A. C. Gomes (1997) Limited [2010] TZCA
168, Joseph Anthony Soares @ Goha v. Hussein Omary [2013] TZCA 328 and Bahati Moshi Masabila t/a Ndono Filling Station v. Hamis Maganga Kilongozi [2024] TZCA 88, In the instant application, the three conditions have been complied with. Firstly, it is evident from the record that after the notice of execution had been served on the applicant on 11.11.2025, the application was filed on 21.11.2025 hence within 14 days as required by rule 11 (4) of the Rules. Secondly, in paragraphs 15, 16 and 17 of the supporting affidavit it is deponed and established that, the decretal amount, that is, TZS. 368,958,120.00, is colossal and that if the execution of the decree is not stayed and the amount is paid to the respondent whose financial standing is not known, the applicant is likely to suffer substantial loss should, at the end, the pending appeal succeed. Thirdly, according to paragraph 18 of the supporting affidavit, the applicant is willing and ready to deposit a bank guarantee as security for the due performance of the decree as it may ultimately be binding upon it. Since the conditions precedent for issuance of an order for stay of execution have been met as substantiated above, good cause has been shown warranting grant of stay of execution of the decree as sought in the notice of motion. The application is thus accordingly granted. The
execution of the decree of the High Court of Tanzania (Labour Division), at Dar es Salaam, in Revision Application No. 124 of 203, dated 29.08.2023, is hereby stayed pending the hearing and final determination of the applicant's appeal. The stay order is however, conditional upon a deposit of a bank guarantee of the sum of TZS. 150,000,000.00 to the Court by the applicant within thirty (30) days from the date of the delivery of this ruling. Costs to be in the cause. It is so ordered. DATED at DODOMA this 27tfl day of April, 2026. Ruling delivered Virtually this 27th day of April, 2026 in the presence of the Mr. Kyariga N. Kyariga, learned counsel for the applicant, Mr. Evode Mushi, learned counsel for the respondent and Mr. Shabani Kinyai, Court A. M. MWAMPASHI JUSTICE OF APPEAL eby certified as a true copy of the original.