EcoBank Tanzania Limited vs Double A Company Limited and 3 Others (Civil Application No. 1056 of 2024) [2024] TZCA 1316 (12 November 2024)

ECOBANK TANZANIA LIMITED VS DOUBLE A COMPANY LIMITED AND 3 OTHERS COURT OF APPEAL TANZANIA (CORAM: NGWEMBE, J.A. ) CIVIL APPLICATION NO. 1056 OF 2024 (Application for Stay of Execution of the decree of the High Court of Tanzania at Dar es Salaam) dated the 25th September, 2024 in Civil Reference No. 25916 of 2023 ) Civil Procedure - Stay of Execution - Requirements for stay pending appeal - Timeliness and security provision - Bank guarantee condition. In this case, the applicant was dissatisfied with the High Court’s endorsement of the Taxing Master’s decision awarding TZS 300,760,000.00 in Taxation Cause No. 131 of 2023. It lodged a notice of appeal on 15 October 2024 and applied for certified copies o f the decision. Meanwhile, the respondents initiated execution proceedings (Execution No. 24948 of 2024) before the High Court, prompting the applicant to seek a stay of execution from the Court of Appeal under Rule 11(3), (4), (4A), (7), and 48 of the Tan zania Court of Appeal Rules, 2009. The respondents did not oppose the application, subject to the applicant furnishing a bank guarantee within 30 days. The applicant confirmed readiness to comply and waived any claim for costs. The Court examined compliance with Rule 11 of the Rules and was satisfied that the application was lodged timely, a day after the applicant was served with the execution proceedings. The Court was also satisfied that the applicant attached all necessary do cuments, including the notice of appeal; and that the affidavit disclosed that the applicant was ready to furnish security and demonstrated risk of irreparable loss if execution proceeded before appeal determination.

The Court considered the three key conditions for a stay of execution: no undue delay, substantial loss, and provision of security. Considering the applicant’s compliance and the risk posed by the large sum involved, the Court granted the stay of execution , conditioned upon the applicant furnishing a bank guarantee within one month of the ruling. Held: (i ) The court held that the application for stay of execution was filed within the prescribed time following the receipt of the notice of execution. (ii) The applicant complied with the legal requirements under Rule 11, including providing assurance of security for the decree amount, thus justifying a stay of execution. (iii) The respondents did not oppose the stay application, and both parties agreed that a banker's guarantee should be furnished within 30 days. The Court ordered that the execution in High Court Execution No. 24948 of 2024 was stayed pending final determination of the intended appeal. The Court ordered that the applicant must provide a bank guarantee covering TZS 300,760,000.00 within 30 days from the date of the ruling. There was no order as to costs. Statutory Provisions referred to: Rule 11(3) , Rule 11(4) ,, Rule 11(4A) , Rule 11(7) , Rule 48 of t he Tanzania Court of Appeal Rules, 2009 Cases referred to: Ahmed Mbaraka v. Mwananchi Engineering & Contracting Co. Ltd, Civil Application No. 229 of 2014, [2016] TZCA 747 (15 February 2016) Arusha International Conference Centre v. Edwin William Shetto, [2000] TLR 53 Chitegetse Monica Migembe v. Akiba Commercial Bank Plc, Civil Application No. 74/18 of 2024, [2024] TZCA 947 (27 September 2024)

National Bank of Commerce Limited v. Alfred Mwita, Civil Application No. 172 of 2015, [2018] TZCA 270 (5 September 2018) Rose Benedict v. Janet Evarist Njau & Others, Misc. Civil Application No. 311/02 of 2024, [2024] TZCA 508 (27 June 2024) Tanzania Sewing Machine Co. Ltd v. Njake Enterprises, Civil Application No. 238 of 2014, [2015] TZCA 546 (16 December 2015)