Chavda vs Covell Matthews Partnership Ltd (Misc. Civil Appeal 62 of 2000) [2008] TZHC 3 (25 April 2008)

TanzLII

Automated Summary

Key Facts

The case involves an application for leave to appeal a High Court ruling that dismissed a request for extension to file an affidavit in opposition to a winding-up petition. The Appellant (GAUTAM JAYRAM CHAVDA) sought to challenge the decision of Mihayo J, who ruled the dismissal of the extension application was an interlocutory matter not appealable under Section 5(2)(d) of the Appellate Jurisdiction Act. The Court of Appeal had previously remitted the case to the High Court for hearing on merit after finding the Appellant had locus standi. The current ruling concluded the application for leave to appeal was incompetent, as the dismissal of the extension request did not finally determine the winding-up petition itself.

Issues

  • Whether the following causes are sufficient to justify the delay of filing affidavit in opposition, that is: (a) The summons and Petition were affixed in office premises or served to the staff a neighbour of the Applicant while the Applicant Company was officially closed and all the staff on compulsory paid leave and the Management and Directors out of the country; (b) Whether service of the Petition to an advocate before she received instructions to represent the Applicant in the Compulsory Winding – Up Petition, is effective service.
  • Whether service of the Compulsory winding up Petition had been properly affected by the Respondent/ petitioner.
  • Whether the Applicant/ Respondent had been given a fair chance of filing Affidavit in opposition and defending itself under the present circumstances.

Holdings

  • The court interpreted the Court of Appeal's direction as not requiring a hearing on uncontroverted matters, thus striking the application as incompetent.
  • The Court of Appeal found that no proper legal reply was furnished to the petition, leaving the averments uncontroverted.
  • The court held that the dismissal of the application for extension of time to file an affidavit in opposition was an interlocutory decision, not appealable at this stage.

Remedies

  • The application for leave to appeal was struck out because it was deemed an interlocutory matter under the Appellate Jurisdiction Act, which is not appealable at this stage.
  • The court awarded costs against the applicant in relation to the struck-out application.

Legal Principles

The court applied the principle that interlocutory decisions (such as the dismissal of an application for extension of time to file an affidavit in opposition) are not appealable under Section 5(2)(d) of the Appellate Jurisdiction Act unless they finally determine the criminal charge or suit. This was central to dismissing the application for leave to appeal.

Precedent Name

GAUTAM JAYRAM CHAVDA versus COVELL MATTHEWS PARTNERSHIP LTD

Cited Statute

  • Civil Procedure Code 1966
  • Company Ordinance Cap 212
  • Appellate Jurisdiction Act Cap 141 RE 2002
  • Appellate Jurisdiction Act 1979
  • Law of Limitation Act 1971
  • Companies (Winding up) Rules
  • Tanzania Court of Appeal Rules 1997
  • Companies Ordinance Cap 221

Judge Name

Judge J. I. Mlay

Passage Text

  • The decision of Mihayo J, dismissing the application for extension of time in which to file an affidavit in opposition to the Winding up Petition, does not finally determine the Petition itself. I would therefore uphold Mr. Marando submission that the ruling is not appealable for being an interlocutory matter, as provided by section 5 (2) (b) of the Appellants Jurisdiction Act.
  • The Court of Appeal further found that, "no proper legal reply was furnished to the petition by the appellant. The averments by the appellant, remained, as it were, uncontroverted".
  • It is further ordered that the case is to be remitted to the High Court with direction to proceed with the hearing on merit before another judge from the stage reached before the preliminary objection was raised.