Hared Mallac Tanzania Limited versus Junaco (T) Ltd; Commercial Case no 159 of 2014; High Court of Tanzania (Commercial Division) at Dar es Salaam (unreported)
- Civil Procedure
- Execution – arrest and imprisonment -whether chief executive officer of a company can be arrested and imprisoned as a means to execute a decree.
Held:-
(i) The general rule is that an officer of a company cannot be imprisoned in execution of a decree against the Company until and unless the corporate veil is lifted. The purpose of lifting a corporate veil is to allow the court to see inside the Company and determine who actually transact for the company and who is responsible for the transaction and acts which results into a decree against the company and who is legally liable to satisfy the decree in execution. (Cited Transport Equipment Limited and Another v. Devram Valambia; Civil Appeal No 44 of 1994 (CA) (Unreported).
(ii) In special circumstances the court may go beyond the principles set in the case of Solomon v. Solomon Co. Ltd (1897) AC 22 and deal with the officers of the Company directly. (Cited Yusuf Manji V. Edward Masanja and Another; Civil Appeal No 78 of 2002 (CA – Unreported).
(iii) Execution of a decree by way of arrest and imprisoning as a civil prisoner of chief executive officer of a company can be granted if there is evidence that the company does not own attachable property or that it is insolvent and it does not have sufficient amount in its bank accounts to satisfy the decree against it.