Automated Summary
Key Facts
Khalid Ahmed Saleh (Plaintiff) sued Transgeotek Engineering Co. Ltd (Defendant) for breach of a supply and operations agreement dated 25th July 2019. The Plaintiff claimed TZS 106,187,800 remaining debt after partial payments, alleging the Defendant failed to meet payment obligations. The case was settled via a Deed of Settlement on 14th September 2022, with the Defendant agreeing to pay TZS 75,000,000 in installments: TZS 45,000,000 within 6 months, followed by TZS 30,000,000 over 24 months in four installments of TZS 7,500,000 each. The Plaintiff also agreed to withdraw signatory rights from the Defendant's bank accounts. The Court adopted the settlement terms as a Consent Judgment.
Transaction Type
Supply and Operations Agreement
Issues
Whether the Defendant breached a supply and operations agreement by failing to pay the Plaintiff the remaining amount of TZS 106,187,800/=. The court approved a settlement where the Defendant agreed to pay TZS 75,000,000/= in installments.
Holdings
The court adopts the Deed of Settlement as Consent Judgment, approving the agreed terms for the Defendant to pay the Plaintiff TZS 75,000,000/= in installments and each party bearing their own costs.
Remedies
- The court ordered that each party shall bear their own costs of the suit.
- As a condition, the plaintiff agreed to withdraw their signatory status from the defendant's bank accounts (CRDB Bank PLC, Mpwapwa Branch and NMB Bank PLC, Mbuyuni Branch) immediately after the deed of settlement was signed and adopted.
- The defendant agreed to pay the plaintiff a total of TZS 75,000,000 in the following manner: 45 million within six months, followed by 30 million over twenty-four months in four installments of 7.5 million each, spaced six months apart.
Contract Value
60000000.00
Monetary Damages
75000000.00
Legal Principles
The court adopted the Deed of Settlement as a binding Consent Judgment under Section 95 and Order XXIII, Rule 3 of the Civil Procedure Code, enforcing the parties' agreement to resolve the dispute amicably.
Key Disputed Contract Clauses
- The dispute centered on the Defendant's failure to adhere to the agreed payment obligations under the 2019 Supply and Operations Agreement, including the total amount owed (TZS 165,187,800) and specific payment timelines. The court approved a revised payment structure in the Deed of Settlement.
- The Plaintiff alleged the Defendant breached the supply agreement by failing to pay the full amount owed. The court's Consent Judgment formalized the settlement to resolve this breach through structured installments.
Cited Statute
Civil Procedure Code
Judge Name
M. J. Chaba
Passage Text
- That, the Defendant has agreed to pay the Plaintiff a total amount of TZS 75,000,000/=... within Twenty-Four (24) Months in Four (4) installments of TZS 7,500,000/=.
- Having scrutinized and perused the Deed of Settlement, I am satisfied that both parties have signified their consent by putting their signatures whereas; Mr. Charles Lugaila, learned advocate signed on behalf for the plaintiff and Mr. Kelvin Manase and Mr. Jonas Japhet Moshi who are the Directors of the Defendant's Company... filed the Deed of Settlement.
- It is so ordered. DATED at MOROGORO this 14th day of September, 2022.
Damages / Relief Type
- Declaratory Order confirming the Defendant's obligation to pay TZS 75,000,000/= in installments as per the Deed of Settlement
- Compensatory payment of TZS 75,000,000/= (TZS 45 million within 6 months, TZS 30 million over 24 months in four installments)