Good afternoon learned friends. I have come across a scenario which is very interesting and would be glad to have your views and experience on this one. My client had a case relating to breach of contract. The amount was around tsh 50 million. When the matter was called for hearing, counsel for defendant raised a PO (notice of which had been given earlier) that the RMs court has no jurisdiction to determine the case because the amount claimed is above the pecuniary jurisdiction of the RMs court in commercial cases.However, when I reviewed the documents filed in the RMs court, I found that the case was registered as a normal civil case and not commercial case.Surprisingly, the presiding magistrate agreed with the counsel for the defendant and struck out the suit holding that the matter was a commercial case and the RMs court has no jurisdiction. The client was in limbo and sought my assistance. I have gone through section 40A of the MCA and found properly that the jurisdiction of the RMs court in commercial cases is Tsh 30 million.However, on the other hand, the commercial court rules, 2012 require the claim to be of Tsh 70 million or more.Secondly, the case was registered as a normal civil case to which the RMs court has jurisdiction given the fact that the pecuniary jurisdiction on suits relating to movable claims is tsh 100 million.Now, was the magistrate right when he struck out the suit.Secondly, why would he conclude that the matter is a commercial case and not an ordinary civil case. Assuming it is a commercial case, how do you commence court proceedings given the fact that the commercial court rules require a claim to be tsh 70 million or more. I intend to appeal against the ruling, however, it would also be useful to have your practical experience and views on this. It is now a matter of great concern and I think TLS can take this up with the government for amending the MCA on this point.
Posted on: Wed, 05 Nov 2014 12:00:31 +0000
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