High Court dismisses StanChart appeal application in IPTL case

DAR ES SALAAM: THE High Court Commercial Division in Dar es Salaam has dismissed an application by Standard Chartered Bank seeking an extension of time to pursue its appeal challenging the High Court decision issued on August 26, 2020, in favour of Independent Power Tanzania Limited (IPTL), which blocked enforcement of a UK judgment.

The Standard Chartered obtained foreign judgement from the High Court of Justice of England in November 2016 against the IPTL arising from a loan facility agreement.

The StanChart therefore moved to the High Court of Tanzania (Commercial Division) seeking registration of the foreign judgement for enforcement in the country.

However, the IPTL challenged the registration of the judgement, upon which the High Court set aside the registration of the judgement on the ground that there existed parallel proceedings in Tanzanian courts concerning the same subject matter, thereby posing risks of conflicting judicial determinations.

Aggrieved by that decision, the Standard Chartered lodged a notice of appeal before the Court of Appeal of Tanzania. However, when the appeal came up for hearing, the IPTL filed an objection challenging its competence, particularly on account of non-compliance with procedural requirements relating to service of the memorandum and record of appeal.

ALSO READ: Police clear IPTL chairman Sethi of criminal records

By its ruling delivered on 9th January, 2026, the Court of Appeal upheld the preliminary objection and struck out the appeal for being incompetent.

The ruling, delivered on Tuesday, effectively ends attempts by Standard Chartered Bank (Hong Kong) Limited and Standard Chartered Bank Malaysia Berhad to revive Civil Appeal No. 386 of 2022.

Justice Musa Pomo ruled that the applicants failed to comply with court orders, including failure to file written submissions within the timeframe directed by the court.

“The Court found the applicants failed to comply with directions on prosecution, specifically failure to file written submissions within the time frame ordered,” Judge Pomo stated.

He further observed that the applicants’ conduct was comparable to failure to appear and prosecute or defend a matter, as the case may be.

The ruling was delivered in the presence of Mr Prince Chenge, advocate for the applicants.

Reacting to the decision, IPTL Executive Chairman, Mr Harbinder Singh Sethi, said the ruling vindicates the company’s longstanding position that the UK judgment was obtained and pursued irregularly.

“The High Court has upheld the rule of law. You cannot abuse court process, fail to follow clear directions and expect indulgence. This decision protects Tanzanian companies from foreign judgments secured without due regard to local proceedings,” Mr Sethi said.

He added that the dismissal sends a strong message that procedural compliance is mandatory, even for international financial institutions.

Mr Sethi also commended the court for reaffirming that parallel proceedings cannot be ignored.

“Since August 26, 2020, the position has been clear: you cannot register a foreign judgment when the same subject matter is still before Tanzanian courts. Justice Pomo has closed the door on forum shopping,” he said.