The dispute involving Quality Group Limited and Tanzania Building Agency (TBA) over redevelopment of Housing Estate Complex at Masaki area in Dar es Salaam, described shortly as Ujenzi Village, has finally reached the Court of Appeal for determination.
It is Quality Group Limited which has knocked doors of the Court of Appeal, the highest temple of justice in the country, to seek its intervention with a view of challenging a judgment and decree issued by High Court Judge Augustine Mwarija on May 9, 2013, on the dispute.
The company, through a seasoned advocate, Dr Ringo Tenga, is asking for an order, extending time within which to file an application for stay of execution of the decree of the High Court and also for another order to stay the said decision, pending determination of an intended appeal on the matter.
Dr Tenga states that despite having requested for copies of proceedings, judgment and decree, the Company was only provided with the judgment on July 16, this year, by which the time the statutory period limit to file the application for stay pending appeal had already lapsed.
“The applicant (Quality Group) has filed a notice of appeal against the High Court judgment, which dismissed the suit with costs and held the applicant to be in breach of the agreement. If the Court does not grant the orders sought, the appeal will be rendered nugatory,” reads part of the application.
He alleges that the intended appeal stands an overwhelming chance of success and should the TBA execute the decree in question, the applicant would suffer substantial and irreparable loss.
The dispute involving the parties arose when TBA leased the Company the Complex in question, previously known as Canadian Village, where prior years some expatriate from Canada were living and one of conditions to the agreement was payment of annual rent of 260,000 US dollars.
It is alleged that the parties agreed under conditions of lease that the works for redevelopment of the property ought to have commenced not later than three months from the date of signing of the agreement. However, records of the case show, until the agreed period lapsed, the Company had not commenced the works.
As a result, on May 29, 2003, the TBA issued a notice of intention to terminate the agreement and the Company was reminded of its obligations as per agreement a month later.
In turn, Quality Group Limited filed a suit at the High Court, claiming that the TBA was in breach of the agreement because the delay in execution of works was occasioned by negotiations which were in place at the time between the parties on the appropriate mode and extent of redevelopment of the Village.
But TBA had strongly opposed the suit, alleging that the Company failed to comply with the conditions of the agreement and occasioned significant loss of about 3,120,000 US dollars to the Agency and also lost opportunity of redevelopment of the property from donors.
After hearing the parties, Judge Mwarija agreed with the TBA and dismissed the suit by the Company with costs, ruling that the same was devoid of merit and that Quality Group has breached the terms of the agreement signed by the parties.
By FAUSTINE KAPAMA, Tanzania Daily News
