Tanzania: Manji Loses Appeal in 13bn/ - Tigo Share

3 March 2017

Mergers, Acquisitions and Financial Results

Efforts by Quality Group Limited and Golden Globe International Service to challenge revision proceedings on the disputed 13bn/- transaction in the sale of 34,479 shares in Mic Tanzania Limited, trading as Tigo, flopped last week.

The Court of Appeal dismissed all grounds of objections the two companies had raised against the proceeding hearing, following a complaint by Millicom (Tanzania) NV, which claims to legally own the shares in question.

Justices Mbarouk Mbarouk, Augustine Mwarija and Shaban Lila overruled the grounds of objections and ordered the revision proceedings to be set for hearing on a date to be fixed later.

In the grounds of objections, the two companies under legal services of advocates Ndurumah Majembe, Herbert Nyanga, Mpaya Kamara and Joseph Ndazi, had stated that the revision proceedings were incompetent since Millicom (Tanzania) NV had alternative remedies.

Among the remedies, the lawyers submitted, included filing a separate suit. They had contended further that the proceedings were incompetent for non-joinder of the parties and that the same were bad in law for containing incomplete records.

In the ruling delivered by the Court's Registrar John Kahyoza, the justices pointed out that the objection relating to the non-joinder of the parties was not fit to be raised as an objection because such issue would need facts to be ascertained.

According to the justices, the facts will depend on the discretion of the court to adjourn the matter so that an appropriate party be joined. As a result, they said, the issue will not lead the case to be disposed of or dismissed.

"For that reasons, we are of the view that the objection on non joinder of some parties ought to be argued in a normal manner, hence the point of objection was prima facie legally untenable. We therefore overrule it," they said.

Regarding the other grounds of objections, the justices agreed with the submissions by advocates for Millicom (Tanzania) NV, Eric Ng'imaryo and Fayaz Bhojan, that when dealing with revision proceedings opened suo mottu the Court of Appeal has to be born in mind that it is the final court of final resort.

They said the Court of Appeal was the final custody of fundamental judicial duty to do justice. "It is not wise to allow any restrictions of powers, authority and jurisdiction coffered upon it," the justices pointed out in the ruling.

Source: Tanzania Daily News 28 February 2017