Court Orders Fuel Firm to Pay 347 Million/ – to Businessman

The High Court's Commercial Division has ordered a fuel company, Hash Energy Tanzania Limited, to pay a local businessman, Khamis Maganga, over 347m/- following a commercial dispute involving delivery of petroleum products.

Judge Jacobs Mwambegele ruled in favour of the businessman after issuing a default judgment against the company having failed to file its defence in a counter claim resulting to the dispute involving payments of over 1.6bn/-.

According to the judge, Hashi Energy is to return to the businessman 113,000 litres of petroleum products or pay him 228,050,000/-, being the value of the said petroleum products and 109,440,000/- being loss due to non use of three trucks and three trailers for a period of eight months.

The judge further directed such payments to attract an interest of 21 per cent per annum from the date of filing the counter-claim to the date of judgment and other interest of seven per cent per annum from the date of judgment to the date of satisfaction in full. Hashi Energy Company was further ordered to pay 10m/- as general damages and costs of the counter claim.

It is outlined in the default judgment that on November 17, 2014, the company instituted a suit against four defendants, where Maganga was not among them. In an amended plaint filed on March 17, last year, the names of defendants were slightly changed with some removed and others maintained and Maganga, represented by advocate Capt. Ibrahim Bendera, was included in the list.

The businessman filed his written statement of defence. In his defence, Maganga filed a counter-claim to the suit. It happened that Hashi Energy Company never filed the reply to the written statement of defence and the defence to the counter-claim.

Efforts to have such documents filed out of time proved futile following a ruling of October 15, last year. As a result, the businessman invoked Rule 22 (1) of the High Court (Commercial Division) Procedure Rules and requested the court that orders sought in the counter claim or as the court may deem fit be granted. Such Rule allows the court to enter judgment on default by the party to file his defence.

In the main suit, Hashi Energy is requesting the court to order the respondents to pay him 829,960,000/-, declaration that KCB Bank is liable for the applicant in the sum of 850m/- undertaken to be paid under the bank guarantee and for declaration that Mr Maganga is liable to pay 231,060,000/- as value of fuel.

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