Vehicle and Equipment Leasing (T) Ltd vs Star Planet Consultancy Agency Ltd (Misc. Commercial Application 5 of 2022) [2022] TZHCComD 210 (8 July 2022)

TanzLII

Automated Summary

Key Facts

The court granted Vehicle and Equipment Leasing (Tanzania) Ltd's application seeking urgent orders to restrain Star Planet Consultancy Agency Ltd from breaching clauses in their Master Rental Agreement and to return 33 vehicles and equipment. The ruling (dated 08/07/2022) mandated immediate return of the listed items to the applicant's premises in Dar-es-Salaam to prevent further damage, wastage, and loss of value pending the main case resolution.

Transaction Type

Lease agreement dispute over return of vehicles

Issues

The court addressed whether it should grant an injunction to restrain the respondent from continuing to breach specific clauses (4.1, 4.6, 9.1(a), 10.4) of the Master Rental Agreement dated 16th July 2021 and Clause 7 of the Rental Schedules. The applicant sought orders to immobilize and return 33 listed vehicles and equipment to prevent further breaches, wastage, damage, and loss of value pending the main suit's resolution. The court granted the application, directing the respondent to return the vehicles in accordance with Appendix 1's return conditions.

Holdings

  • The court granted the applicant's request to restrain the respondent from breaching the Master Rental Agreement and ordered the return of 33 vehicles and equipment to prevent further damage and loss of value.
  • The costs associated with the application were ordered to be absorbed within the main suit proceedings.
  • The respondent was directed to immobilize and return the listed vehicles and equipment to the applicant's premises in Dar-es-Salaam, in accordance with the return conditions outlined in the Master Rental Agreement.
  • The court emphasized that the return of vehicles must adhere strictly to the conditions specified in Appendix 1 of the Master Rental Agreement dated 16th July 2021.

Remedies

  • The Respondent is ordered to immobilize and return thirty three (33) Vehicles and Equipment to Plot 98, Nyerere Road, Ilala District, Dar-es-Salaam to prevent continued breach of the Master Rental Agreement and loss of value pending final determination of the main suit.
  • The Respondent must return the vehicles in accordance with the return conditions set out in Appendix 1 (Return Conditions) of the Master Rental Agreement.
  • Whosoever is in possession of the equipments and vehicles listed is ordered to surrender them to the Respondent with immediate effect from the date of this ruling.
  • Costs of this application shall be in the main suit.
  • This application is hereby granted.

Legal Principles

The court granted an interim injunction under sections 68(c) and (e) of the Civil Procedure Code and Order XXVII Rule 1(a) and (2)(1) to restrain the respondent from breaching contractual clauses and to compel the return of 33 vehicles and equipment pending resolution of the main suit.

Key Disputed Contract Clauses

  • Clause 7 of the Rental Schedules (Addendum to the Master Rental Agreement), which the Applicant claims the Respondent is violating by continuing to use the leased assets.
  • Clauses 9.1(a) and 10.4 of the Master Rental Agreement, which specify return conditions for vehicles and equipment to prevent damage and loss of value.
  • Clauses 4.1 and 4.6 of the Master Rental Agreement, which the Applicant alleges the Respondent is breaching by failing to return leased vehicles and equipment.

Cited Statute

Civil Procedure Code

Judge Name

Deo John Nangela

Passage Text

  • 3. That, the Respondent is hereby ordered and directed to immobilize and return thirty three (33) Vehicles and Equipment listed below from wherever they are to the Applicant's premises at Plot 98, Nyerere Road, Ilala District, Dar-es-Salaam; for purpose of preventing continued breach of Clause 4.1 and 4.6 read together with Clause 9.1(a) and 10.4 of the Master Rental Agreement dated 16th July 2021 and Clause 7 of the Rental Schedules (Addendum thereof), wastage, damage and loss of value of the said Vehicles and Equipment due to continued use by the Respondent, pending final determination/disposal of the main suit:
  • 1. That, this application is hereby granted.
  • 5. That, costs of this application shall be in the main suit.

Damages / Relief Type

  • Specific performance ordered to return 33 vehicles and equipment to applicant's premises per contract terms.
  • Injunction granted to restrain breach of contract clauses and order return of 33 vehicles.