TRITEL CREDITORS WANT APPLICATION BE DISMISSED

THE Liquidator and two creditors of Tritel yesterday asked the Court of Appeal to dismiss with costs an application by Citibank Tanzania Limited, challenging orders that declared invalid their agreement on 18.7bn/- debt with the former mobile phone service provider.

Through their advocate, Mr Cuthbert Tenga, the liquidator, Mr Peter Bakilana, and creditors--VIP Engineering and Marketing Limited and Tanzania Revenue Authority--also asked the appellate court to fault a decision that allowed the bank to commence appeal proceedings against the orders.

Mr Tenga told Justices John Mroso, Simon Kaji and Rutakangwa that the decision by Justice Eusebia Munuo to grant the bank extension of time to file a notice of appeal and subsequently leave to appeal against the orders should be set aside as it was wrongly issued.

The orders that declared invalid the agreement on the debt between the bank and Tritel was given by the then High Court Commercial Division Judge, Nathalia Kimaro, on June 12, 2003. Mrs Kimaro is currently a judge with the Court of Appeal.

According to Mr Tenga, Justice Munuo erred in her decision dated April 10, 2006 to hold that the bank's actions of pursuing wrong procedures was sufficient reason for granting extensions of time as no cogent reasons for delay were made out to give her discretion to reach such conclusion.

The advocate submitted that Justice Munuo failed to appreciate that even without invalidating the debenture dated April 6, 2001, the High Court had powers under the law to make orders against the Citibank, which was a banker of Tritel that was ordered to be winded up.

He submitted that since the matter arose out of the winding up proceedings governed by Companies Ordinance and Winding up Rules, the High Court had powers to make orders against all creditors, bankers, contributories and others who had associated with the company in any business transaction.

In his reply to the submissions, however, advocate Dilip Kesaria, for the bank, asked the panel to reject the application by the liquidator and creditors of Tritel, as the order of Justice Munuo, giving the bank opportunity to challenge the invalidation of the debenture, was correct.

Mr Kesaria said that before reaching her conclusion, Justice Munuo considered all matters surrounding the case. He refuted the submissions by Mr Tenga that they did not demonstrate sufficient reasons to convince the court to grant them extension of time to ignite the appeal process.

According to him, they had pointed out thoroughly reasons for delaying to file the appeal and illegalities that were committed by the trial court, including invalidation of the debenture before according the bank the right to be heard and the erroneous appointment of the liquidator.

Upon hearing the submissions from both parties, the justices said they would give their ruling on the matter on a date to be given later.

SOURCE: DAILY NEWS