By FAUSTINE KAPAMA-Judiciary
THE Government of
Zanzibar is to pay over 158bn/-, which includes principal sum and interests to a
Company, Laemthong Rice Co. Ltd, being worth of 39,900 tonnes of rice supplied
about 37 years ago.
This follows a decision
of the Court of Appeal to allow an appeal under which the Company, the
appellant, had lodged to oppose the decision of Registrar of the High Court of
Zanzibar to certify the entitled payments at USD 5,700,000 instead of USD 69,044,651.24.
“We allow this appeal.
Consequently, we quash the Registrar's ruling as well as (that) of the High
Court, (which rejected the application for reference on such decretal sum),”
Justices Stella Mugasha, Ignas Kitusi and Sam Rumanyika declared in their
judgment delivered recently.
They set aside the
certification of USD 5,700,000 and stood by the Court judgment dated 18 December,
2000, stating that the ruling by the Registrar given in favour of Principal
Secretary in the Ministry of Finance Zanzibar, the respondent, was wrong
whatever arguments that had been put forward.
The justices pointed out
that the Court's finding on such point in its earlier decision was very clear
that the rice was duly delivered in three shipments between 1986 and 1988 and
there was part payment of the agreed price.
They recalled to have
states that the balance and the accumulated interest amounted to USD 69, 044,
651.24 as of January 1997 and the efforts to secure settlement of the debt
proved fruitless although the respondent did not deny the debt, but actually
acknowledged it on 15 July, 1996.
“The above has remained
to be the position. The Registrar had no powers to alter the ex- parte judgment
and decree of the High Court, nor the previous order of this Court in this case,”
the justices said.
Similarly, they said, in
dismissing the application for reference lodged by the appellant to challenge
the decision of the Registrar, the High Court abdicated its duty to correct the
Registrar's manifest error.
“What was stated by the
Court in (the case of) Victoria Real Estate Development Limited, on the duty of
the parties and even the courts to respect court orders, was recently restated
in (the case of) Karori Chogoro vs Waitihache Merengo, Civil Appeal No. 164 of
2018 (unreported),” they said.
On 23 July 1985, which is
37 years ago, at the request of the Government of Zanzibar, the appellant
supplied it with 39,900 tonnes of rice worth USD 12,935,685, with compounded
interest of 25 percent per annum.
No full payment for the
rice has ever been made by the respondent in fulfilment of its contractual
obligation. The appellant instituted proceedings in the High Court claiming the
said USD 69, 044, 651.24 together with interest thereon at 25 percent per annum
from January 1997 until full payment.
The respondent, though
duly represented by the Attorney General's Chambers in Zanzibar, failed to file
any defence due to his lack of co-operation with the Chambers. This led to the
Chambers withdrawing in frustration. The court entered an ex-parte judgment after
receiving evidence of the appellant.
Reason behind the matter pending
in Court for all such long is for determination of the amount that should be
paid by the respondent and how execution should be carried out.
However, on 18 December,
2000, the Court pronounced itself on that issue. Even after the Court's clear
position, execution of the decree proved to be a nightmare and the issue of the
amount to be paid was resurrected.
After the enactment of
the Government Proceedings Act No. 3 of 2010 that barred such execution, the
matter was taken to the Registrar of the High Court of Zanzibar to issue a
certificate for the decretal amount.
The Registrar issued a
certificate for the amount of USD 5,700,000. The appellant challenged the
Registrar's ruling on such certification by way of reference to the High Court.
However, the High Court dismissed the reference. It was at that point in time
when the matter went back to the Court of Appeal.
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