Abdul Aziz Lalani and 2 Others versus Sadru Mangalji

Abdul Aziz Lalani and 2 Others versus Sadru Mangalji; Misc Commercial Cause No 8 of 2015; High Court of Tanzania (Commercial Division) at Mwanza (Unreported).

  • Civil Procedure
  • Security for costs – what amounts to immovable property
  • Security for costs- what the court should take into consideration before granting an application for security for cost?
  • Security for costs – what is the rational of the rule.
  • Security for costs- How the court should determine the quantum?

 

Held:-

(i) For an applicant to succeed in the application for provision of security for costs, he must prove to the satisfaction of the court that the respondent resides outside Tanzania and that he does not possess in Tanzania sufficient immovable property other than the property in suit.

(ii) Where a foreign company does not have sufficient immovable property in Tanzania the court should grant the order for security for costs. The purpose of the law is to protect the opposing litigant against any costs likely to be incurred in defending the action be it a suit or a counterclaim (citing JCR Enterprises Limited v. Islam Balhabou  & 2 others, Commercial Case No77 of 2007 (Unreported).

(iii) Immovable property is defined as property that cannot be moved; an object so firmly attached to land that it is regarded as part of the land.

(iv) Once the court is satisfied that security for costs should be given, it would consider various factors in determining the quantum, including the complexity of the case, research work load involved, costs incurred up to the time of application and after.  The applicant should provide sufficient material to the court showing how the figure proposed, if any, was arrived at.

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