Case Law[2026] TZHC 2561Tanzania
Geita Gold Mining Limited vs Elizabeth Charles Nzegenuka (Miscellaneous Land Application No. 11249 of 2026) [2026] TZHC 2561 (25 May 2026)
High Court of Tanzania
Judgment
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IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA
GEITA SUB - REGISTRY
AT GEITA
MISCELLANEOUS LAND APPLICATION NO. 11249 OF 2026
(Arising from Land Case No. 11250 of 2025 in the High Court of Tanzania, Geita Sub - Registry)
GEITA GOLD MINING LIMITED ...................................................APP LICANT
VERSUS
ELIZABETH CHARLES NZEGENUKA ...........................................RESPONDENT
RULING
Date of last Order: 13/05/2026
Date of Judgment: 2 5 /05/2026
MWAKAPEJE, J.:
Under a certificate of urgency, the applicant herein seeks a
temporary injunction restraining the respondent from withdrawing TZS
48,322,083/= allegedly deposited by mistake into the respondent ’s CRDB
Bank account No. 10171470997. The application is brought under Order
XXXVII, Rules 1(a) and 2(1), Sections 78(e) and 105 of the Civil Procedure
Code, Cap. 33 R.E. 2023, and is supported by the affidavit of David
Nzaligo, the applicant ’s Head of Legal and Secretary.
The applicant averred that she has instituted Land Case No. 6076
of 2026 before the High Court, Geita Sub - Registry, against the
respondent , seeking, among other reliefs, a declaration that the
respondent trespassed into the applicant ’s area covered under Special
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Mining Licence No. 45/99 and unlawfully erected structures therein in
anticipation of compensation.
It is further stated that during a compensation exercise conducted
in Nyakabale Village in 2025, the applicant inadvertently entered into a
Compensation Agreement with the respondent on 9 March 2026
concerning Parcel No. VAL/GTA/NKB/1619/L despite the pending land
dispute. Subsequently, through further inadvertence, the applicant
transferred TZS 48,322,083/= to the respondent ’s account on 27 March
2026 and later executed an acknowledgement of receipt of compensation
payment.
The applicant contends that unless restrained, the respondent is
likely to withdraw the funds, thereby rendering the pending suit nugatory.
It is further averred that the respondent lacks known assets or a reliable
source of income from which recovery could be made should the applicant
succeed in the main suit. Accordingly, the applicant maintains that the
balance of convenience favours preservation of the funds pending
determination of the suit.
The application was opposed by the respondent through a counter -
affidavit in which she partly admitted and partly denied the applicant ’s
averments. She admitted that the applicant conducted a valuation
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exercise in 2025 for compensation purposes within the Nyakabale area
under Special Mining Licence No. 45/99 , but denied that the
Compensation Agreement executed on 9 March 2026 was entered into
inadvertently, thereby placing the applicant to strict proof thereof.
The respondent further stated that on 27 March 2026 , she received
TZS 48,722,083/= from the applicant into her CRDB account, but shortly
thereafter, the account was restricted from transacting, rendering her
unable to access the funds. She consequently disputed the applicant ’s
claim that the payment was made erroneously.
At the hearing, the applicant was represented by Mr. Galati
Mwantembe, learned advocate, while the respondent was represented by
Mr. Heri Kayinga, also learned advocate.
In support of the application, adopting the contents of the
applicant ’s affidavit, Mr. Mwantembe submitted that the applicant seeks
a temporary injunction restraining the respondent from withdrawing TZS
48,322,083/= allegedly deposited into her CRDB account by mistake,
pending the determination of Land Case No. 6076 of 2026 before this
Court .
Counsel submitted that the respondent is alleged in the main suit to
have trespassed into the applicant ’s Special Mining Licence No. 45/99 and
unlawfully occupied the area in anticipation of compensation. During the
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compensation exercise in Nyakabale Village, the respondent was
inadvertently treated as a lawful beneficiary, resulting in the execution of
compensation documents and the subsequent payment of the disputed
amount.
He argued that the issue of the respondent ’s entitlement to
compensation remains the central issue in the main suit and is yet to be
determined. Consequently, preservation of the funds is necessary to avoid
rendering the suit nugatory should the respondent withdraw the money.
Counsel further submitted that the applicant had established the
conditions for the grant of an injunction, namely the existence of triable
issues and the likelihood of irreparable loss, while the respondent would
suffer no prejudice as the funds would remain intact pending the
determination of the suit.
In reply, Mr. Kayinga adopted the respondent ’s counter - affidavit in
opposition and submitted that the application was defective as it was
founded on an affidavit containing falsehoods, particularly the averment
that the Compensation Agreement was executed inadvertently.
Counsel argued that the Compensation Agreement expressly
recognised the respondent as a lawful occupier and set out the
compensation amount and the account details for payment. He submitted
that the agreement was executed by David Nzaligo on behalf of the
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applicant on 9 March 2026, and that payment was made on 27 March
2026, thereby giving the applicant sufficient opportunity to rectify any
alleged mistake.
Relying on Desmo Boas vs Elina Egidius Paskal @
Paschal (Miscellaneous Land Application No. 5548 of 2025) [2025] TZHC
2464 (27 May 2025) , counsel submitted that affidavits containing
falsehoods vitiate proceedings. He further argued that the compensation
process had undergone official approval, including verification by the Chief
Government Valuer, and that the applicant could not subsequently disown
the process.
Counsel also relied on FINCA Tanzania Mwanza Branch &
Another vs Musa Kazungu Shigula & Another (Civil Appeal No. 128
of 2025) [2026] TZCA 4 (19 January 2026), for the proposition that a
person signing a document is presumed to have understood and accepted
its contents. He therefore contended that the applicant was bound by the
Compensation Agreement and that affidavit averments could not override
documentary evidence.
On the principles of injunctions, counsel submitted that the
applicant had failed to establish a prima facie case or likelihood of success,
while the balance of convenience favoured the respondent , who had
already been recognised as eligible for compensation and had developed
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a legitimate expectation of access to the funds. He therefore prayed for
dismissal of the application with costs.
In rejoinder, Mr. Mwantembe submitted that the allegation that the
affidavit of David Nzaligo contained falsehoods was a serious matter that
could not be determined merely on submissions, but required examination
at trial. He argued that the affidavit itse lf explained the compensation
process and the execution of documents, while maintaining that the
payment was made in error, an issue to be determined upon the full
hearing of the main suit.
Counsel maintained that the central issue remained whether the
respondent was lawfully entitled to the compensation, thus raising a
serious triable issue requiring preservation of the subject matter pending
determination of the suit.
On the balance of convenience, counsel submitted that the
respondent would suffer no prejudice if the injunction was granted as the
funds would remain preserved in her account, whereas allowing
withdrawal of money allegedly paid to an undeserving beneficiary would
occasion prejudice to the applicant . He therefore prayed that the
application be granted.
I have carefully considered the application, the affidavits filed by
both parties, the annexures thereto and the submissions advanced by
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learned counsel for the parties. The issue for determination is whether
the applicant has established sufficient grounds warranting the grant of a
temporary injunction.
The application is brought under Order XXXVII Rule 1(a) and (b) of
the Civil Procedure Code, Cap. 33 R.E. 2023, which empowers the Court
to grant temporary injunctive relief where the subject matter of a suit is
shown to be in danger of being wasted, damag ed, alienated, disposed of,
or otherwise dealt with in a manner likely to prejudice the rights of a party
pending determination of the suit.
The power to grant such relief, however, is discretionary and must
be exercised cautiously. This is because an interlocutory injunction
restrains a party from dealing with property before the final determination
of rights, which may ultimately be found to vest in that party.
Consequently, the Court should only intervene where preservation of the
property in its existing state is necessary to safeguard the subject matter
of the dispute.
The purpose of an interlocutory injunction is therefore to preserve
the subject matter pendente lite so that the eventual decision of the Court
is not rendered nugatory. The principles governing the exercise of that
discretion were succinctly laid down in Atilio v. Mbowe (1969) HCD No.
289, namely , that :
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(i) there exists a serious question to be tried at the hearing,
and there is a probability that he will be entitled to the
relief sought ( or in other words, that he has a prima facie
case to go to trial ) ;
(ii) the Court's interference is necessary to protect him from
that species of injury which the Court calls irreparable
before his legal right can b e established on trial, and
(iii) the comparative mischief or the inconvenience which is
likely to arise from withholding the injunction will be
greater than that which is likely to arise from granting it .
The first question is whether the applicant has demonstrated a
prima facie case disclosing a serious triable issue. The concept of a prima
facie case was discussed in Sarkar on Code of Civil Procedure , 10th
Edition (Reprint, 2004), Vol. II at page 2032, where it is stated that :
“The prima facie case means that the petitioner need not fulfil his case
on merits at the stage of hearing an application, but it would be
sufficient for him to show that he has a fair question to raise as to the
existence of his right till the question is ripe for trial or disposal of the
case……….. Existence of a prima facie case does not mean that the
plaintiff should have a court percent case. What it means is that the
plaintiff should have some case which requires to be gone in to and is
not liable to be thrown at the threshold?”
In short, a party need not establish its entire case at the
interlocutory stage; rather, it is sufficient to demonstrate the existence of
a fair and arguable question requiring investigation at trial.
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Applying that principle to the present matter, the Court notes that
it is undisputed that the sum of TZS 48,322,083/= was transferred into
the respondent ’s account pursuant to a compensation process undertaken
by the applicant . Equally undisputed is the existence of a Compensation
Agreement executed between the parties and the acknowledgement of
receipt of the compensation payment.
However, the applicant contends that the agreement and
subsequent payment arose through inadvertence since the respondent
was allegedly among persons who had unlawfully occupied the applicant ’s
mining area and whose entitlement to compensation is already the subject
of Land Case No. 6076 of 2026. Conversely, the respondent maintains
that the compensation process was lawful, deliberate and undertaken
after valuation and approval by relevant authorities.
The competing positions disclose that the dispute extends beyond
the mere transfer of funds. The real controversy is whether the
respondent was lawfully entitled to compensation and whether the
payment constituted a genuine compensation entitlement or an erroneous
disbursement. That issue remains unresolved and is already the subject
of the pending substantive suit.
At this interlocutory stage, the Court is not required to determine
the veracity of allegations relating to inadvertence, validity of the
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compensation process or whether the respondent was indeed a
trespasser, as doing so would amount to prematurely determining issues
reserved for trial. Likewise, in the peculiar circumstances of this case, the
allegations that the supporting affidavit contains falsehoods cannot be
conclusively determined without testing evidence during trial proceedings.
In my considered view, the unresolved question regarding
entitlement to compensation raises a serious triable issue which cannot
be dismissed at the threshold. Accordingly, the applicant has established
a prima facie case sufficient for purposes of interlocutory relief.
The next consideration is whether the applicant would suffer
irreparable injury if the injunction were withheld. The property sought to
be preserved is a specific sum of money presently held in the respondent ’s
account. Although monetary claims are ordinarily compensable by
damages, the peculiar circumstances of this matter require closer
consideration.
The applicant alleges the absence of known assets or a reliable
means by which recovery could be effected if the substantive suit
succeeds. While this assertion remains untested, it was not effectively
displaced by evidence demonstrating the respondent ’s ability to reimburse
the disputed amount.
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Moreover, the apprehension raised by the applicant is that once the
funds are withdrawn and utilised before determination of the substantive
dispute, recovery may become impracticable, thereby rendering the
pending proceedings nugatory. Preservation of the disputed amount ,
therefore, serves to protect the efficacy of the ultimate decision of the
Court.
In these circumstances, t he Court is therefore satisfied that
withholding interim protection may expose the applicant to prejudice
incapable of immediate remedy should the suit eventually succeed.
Lastly , there is the question of the balance of convenience. The
respondent argues that she had already acquired a legitimate expectation
to access and utilise the compensation after execution of the agreement
and acknowledgement documents. While the Court appreciates such
concern, it must be balanced against the fact that the substantive
question of entitlement remains unresolved.
On the other hand, granting the injunction merely preserves the
status quo without finally depriving the respondent of the funds. The
amount remains intact pending adjudication of the parties' substantive
rights . Conversely, refusal of the injunction risks the disputed funds being
withdrawn before the suit is determined , thereby exposing the applicant
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to greater prejudice. In these circumstances, the balance of convenience
tilts in favour of preservation rather than release of the disputed funds.
Consequently, I am satisfied that the applicant has established
sufficient grounds for the grant of the relief sought. Accordingly, the
application succeeds. A temporary injunction is hereby issued restraining
the respondent from withdrawing or otherwise dealing with the sum of
TZS 48,322,083/= held in Account No. 10171470997 maintained at CRDB
Bank Plc pending determination of the main suit.
Costs shall abide the outcome of the main suit.
It is so ordered.
DATED at GEITA this 2 5
th
day of May 2026.
G.V. MWAKAPEJE
JUDGE