Court upholds decision over Citibank appeal

THE Court of Appeal has upheld the decision allowing Citibank Tanzania Limited to commence appeal process, challenging orders that declared invalid its agreement on 18.7bn/- debt with Tri-Telecommunications Tanzania Limited (Tritel).

Justices John Mroso, Simon Kaji and Edward Rutakangwa ruled in favour of the bank after dismissing with costs an application by liquidator and two creditors of Tritel, who were challenging a decision given by Justice Eusebia Munuo.

In her decision, Justice Munuo of same court granted the bank extension of time to file notice of appeal and leave to appeal against the orders given by then High Court (Commercial Division) Judge Nathalia Kimaro on June 12, 2003.

The justices of the appellate court ruled the decision of their sister (Justice Munuo) dated April 10, 2006, was impeachable as they agreed with her findings that the bank was not heard before orders adverse to its interests were made.

“We agree with the single justice that indeed it is trite law that a party ought to be heard before an order adverse to it is made by a court of law,” they said and cited several authorities to back up their decision.

They insisted that the right to be heard was so basic. A decision arrived at in violation of it, they said, would be nullified for breach of natural justice, even if the same would have reached had the party been heard.

Advocate Dilip Kesaria, for the bank, had 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 (agreement on debt), was correct.

In his submissions, however, advocate Cuthbert Tenga, for the liquidator, Mr Peter Bakilana and creditors--VIP Engineering and Marketing Limited and Tanzania Revenue Authority---had asked the appellate court to fault a decision by Justice Munuo because it was wrongly issued.

DAILY NEWS