National Bank of Commerce Ltd and Another versus Mohamed Trans Limited; Consolidated Commercial Causes No 320 of 321 of 2015: High Court of Tanzania (Commercial Division) at Dar es Salaam (Unreported). ( Mansoor, J).
- Company Law
- Administration – Effect of issuance of administration order.
- Administration – administration order issued – creditors sought to challenge the order by filing a petition -whether proper.
Held:-
(i) When an administration order has been made no proceedings or legal proceedings may be commenced or continued against the Company or its property except with the consent of the administrator or leave of the Court.
(ii) nIf a complaint by the creditor regarding issuance of an administration order is based on a breach of a duty in the conduct of the administrator, a claim can be brought by the creditors under Section 265 of the Companies Act to have the administration order rescinded. However, leave of the court is required before a creditor can bring a petition in court for the orders under section 265 of the Act.