Tanzania’s Judiciary shines in IPTL-SCB case

DAR ES SALAAM: THE Independent Power Tanzania Limited (IPTL) has won an appeal filed by Standard Chartered Bank Hong Kong in the Court of Appeal of Tanzania, which is Civil Appeal No. 386 of 2022.

IPTL challenged in the High Court of Tanzania – commercial division in Commercial Application No. 67 and 75 of 2017.

The registration of a foreign judgment of the High Court of Justices of England, Queens Bench Court, commercial court, which ordered IPTL to pay Standard Chartered Bank Hong Kong an amount tuned to 168m US dollars, and the High Court rejected the registration of the said foreign judgment; hence, Standard Chartered Bank Hong Kong appealed to Court of Appeal.

The ruling was handed down by Judge M.C. Levira, Judge L.E Mgonja, and Judge G. J Mdemu, justices of the Court of Appeal of Tanzania, on January 9, 2026, stricking out the appeal filed by Standard Chartered Bank Hong Kong and upholding the objections raised by IPTL regarding the competency of the appeal.

According to a court order signed by W. A Hamza, Deputy registrar court of Appeal of Tanzania l, the appeal was deemed incompetent due to procedural irregularities and the fact that the underlying claim had already been settled under a government sovereignty guarantee.

The Court of Appeal of Tanzania, Dar es Salaam, is handling Civil Appeal No. 386 of 2022, which was filed by Standard Chartered Bank (Hong Kong) Limited and Standard Chartered Bank Malaysia Berhad as the 1st and 2nd appellants.

The appeal was brought against Independent Power Tanzania Limited (IPTL), Pan Africa Power Solutions (T) Limited, and VIP Engineering and Marketing Limited as the 1st, 2nd, and 3rd respondents, respectively in the case.

On 14th February 2025, the 1st & 2nd respondents filed a Notice of Preliminary Objection in the Court of Appeal. In the notice, the respondents argue that the appellants’ appeal should be dismissed on three procedural grounds.

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The first objection is that the appeal is incompetent because the respondents were not served with the Memorandum of Appeal, violating Rule 97(1) of the Court of Appeal Rules.

The second objection asserts that the appeal was wrongly filed, breaching Rule 90(1) of the Court of Appeal Rules, since the request for a copy of the ruling was submitted out of time.

The third objection contends that the appeal is unmaintainable because the underlying claim was already settled under a government sovereignty guarantee.

The respondents also note that the High Court of Tanzania had issued a decree in Civil Case No. 90 of 2018, rendering the court _functus officio_ in this matter.

The respondents are requesting the Court of Appeal to strike out the appeal with costs. They argue that the appellants no longer have valid legal standing to pursue the matter further.

The notice was dated 14th February 2025 and filed on 17th February 2025 at the Dar es Salaam Sub-Registry, Commercial Division.

The case is now pending a preliminary hearing where the court will decide on the validity of the respondents’ objections.

The preliminary hearing will determine whether the appeal can proceed or be dismissed based on the objections raised.

The legal teams of both parties are preparing submissions regarding the preliminary objections for the upcoming hearing.

The Court of Appeal’s decision is seen as a significant victory for IPTL and its co-respondents. Harbinder Singh Sethi, IPTL Executive Chairman, welcomed the court’s ruling, saying it was a just decision.

Mr. Seth thanked the court, saying, “We thank the Court of Appeal for making the right decision to uphold justice and dismiss the incompetent appeal.”

The case has been closely watched by legal experts and industry stakeholders. The outcome is likely to have implications for similar cases in Tanzania’s commercial courts.

The Court of Appeal’s ruling brings an end to a long-running dispute between IPTL and Standard Chartered Bank.

The decision is a testament to the strength of Tanzania’s judicial system in resolving complex commercial disputes.

The IPTL team is pleased with the outcome and looks forward to putting the matter to rest. The company’s management is reviewing the court’s decision and will provide further updates in due course.

The ruling is expected to have a positive impact on IPTL’s financial position and operations. IPTL remains committed to resolving all outstanding issues and moving forward with its business plans.

The company appreciates the support of its stakeholders and partners throughout this process.