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CHAPTER 248
LOANS AND ADVANCES REALISATION TRUST ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

    RULES

        The LART Seizure and Disposal of Assets Rules

        The LART Loans Recovery Tribunal Rules

RULES

THE LART SEIZURE AND DISPOSAL OF ASSETS RULES

(Section 16)

G.Ns. Nos.
164 of 1993
308 of 1997

    1. These Rules may be cited as the LART Seizure and Disposal of Assets Rules.

    * 2. In these Rules, unless the context otherwise requires:

    "Act" means the Loans and Advances Realisation Trust Act *;

    "the amendment Act" means the Loans and Advances Realization Trust (Amendment) Act;*

    "assets" shall include–

    (a)    receivables and other obligations due to the Owner, lease, indemnity and other agreements together with all collateral security and other rights (including but not limited to rights in relation to shares or stock in a body corporate such as voting rights as well as rights to appoint directors of a body corporate or otherwise engage in the management thereof) granted to the Owner by contract or operation of law to secure or enforce the right of payment of such obligations;

    (b)    real and personal property of any kind owned or held by the Owner including shares or stock of a body corporate obtained by the Owner whether directly or indirectly, through foreclosure or other means in settlement of such obligations;

    (c)    shares or stock and other investments held by the Owner; and

    (d)    the business of the Owner and where the Owner is a body corporate the Owner itself whether as parent or subsidiary body corporate;

    "the Owner" means the borrower in respect of a non-performing asset.

    3. All seizure, disposal or such other acts related thereto by the Trust in respect of assets vested in the Trust in accordance with the Act and these Rules shall be carried out according to these Rules.

    4. Upon direction in accordance with section 13 of the Act, the bank or financial institution shall transfer to the Trust the identified non-performing assets in the following manner:

    (a)    the bank or financial institution shall execute a Deed of Assignment in respect of each non-performing asset in favour of the Trust in the form prescribed in the First Schedule to these Rules;

    (b)    the Deed of Assignment shall be executed and authenticated in the manner shown in the first schedule and the documentation shall be notarised to the effect that signatories are duly authorised officers of the bank or financial institution concerned, in the form prescribed in the Second Schedule to these Rules;

    (c)    Notice of the Assignment in favour of the Trust shall be in the form prescribed in the Third Schedule and shall be forwarded by the bank or financial institution to the Owner together with a letter in the form prescribed in the Fourth Schedule to these Rules as a confirmation of the assignment;

    (d)    the bank or financial institution shall deliver to the Trust on the date of execution of the Deed of Assignment such agreements, mortgages, debentures, instruments, documents of title, records and other documents in respect of the non-performing assets. Where any or all of such agreements, mortgages, debentures, instruments, documents of title, records and other documents in respect of non-performing assets have been registered the bank or financial institution shall issue an affidavit in respect of the date of execution and the date of registration in the form prescribed in the Fifth Schedule to these Rules;

    (e)    the bank or financial institution shall attach to the Deed of Agreement, a list of all agreements, mortgages, debentures, instruments, documents of title, records and other documents referred to in this Rule.

    * 5. (1) All assets, rights and obligations attached to a non-performing asset transferred by a bank or financial institution in pursuance of section 13(1)(a) and (b) of the Act and in the manner provided in Rule 4 shall be deemed to have been transferred and vested in the Trust with effect from 30th June, 1991.

    (2) All assets of the Owner, and rights and obligations relating to a non-performing asset transferred by a bank or financial institution in pursuance of section 13(1)(c) of the Act and in the manner provided in Rule 4 shall be deemed to have been transferred and vested in the Trust, with effect from the date of the Deed of Assignment referred to in Rule 4.

    (3) Upon direction by the Trust the Owner shall provide full information on all the assets owned by him including physical addresses, where applicable, where such assets are located.

    (4) Where the Owner refuses to give full information or gives information which is false shall be liable for prosecution and upon conviction shall be sentenced to pay a fine of not less than ten million Tanzania shillings or to a term of imprisonment not exceeding three years or both.

SEIZURE AND DISPOSITION

    6. Upon the vesting of all assets, rights and obligations in accordance with the provisions of Rule 5, the Trust may appoint in writing any person or persons, whether an employee or employees of the Trust or not, to be manager of the assets or any part thereof upon such terms as the Trust shall think fit and may in like manner, at any time remove any manager so appointed and appoint another manager.

    7. Every manager so appointed under Rule 6 shall be the agent of the Owner and the manager shall have authority and be entitled to exercise in addition to any other powers conferred upon him by any law, the following powers:

    (a)    to enter either personally, or by his servants or agents any premises in which any assets transferred to the Trust may for the time being be or any other premises owned or occupied by the Owner;

    (b)    to take possession of or to collect all or any part of the assets transferred to the Trust and for that purpose to institute proceedings in the name of the Owner or otherwise as the manager may deem expedient;

    (c)    to sell any assets transferred to the Trust in such manner and generally on such terms and conditions as provided in these Rules;

    (d)    to carry on or manage the business of the Owner and for that purpose to raise money either on the security of any assets or otherwise;

    (e)    to make such repairs, improvements and to insure such buildings, plant machinery and effects of the Owner as the manager shall deem necessary and conducive towards the enhancement or preservation of the value of the assets or business of the Owner;

    (f)    to cause shares or stock to be allotted and, or cause calls on the unpaid shares or stock to be made;

    (g)    to close down the business of the Owner where the Trust thinks that it is expedient to do so and to arrange and effect the disposal of the same;

    (h)    to do all such other lawful acts and things as may be incidental or conducive to any of the matters and powers under this Rule.

    8. All moneys received by the manager shall, after providing for all costs and expenses incurred in carrying out the sale or disposal of the assets of the Owner be applied:

    (a)    Where the Owner had charged the asset or assets or undertaking to secure the non-performing asset and the charges so created ranks in priority to any other:

        (i)    first in payment of all costs and expenses of and incidental to the appointment of the manager and the exercise of his powers under these Rules;

        (ii)    secondly in or towards payment to the Trust of all interest or charges unpaid in respect of the non-performing asset;

        (iii)    thirdly towards payment to the Trust of all principal moneys owing on the non-performing asset remaining unpaid;

        (iv)    fourthly in payment of any surplus to the Owner.

    (b)    Where the Trust is an unsecured creditor or the charges created in favour of the Trust do not rank in priority to all others:

        (i)    first in payment of all costs charges and expenses of and incidental to the appointment of the manager and the exercise by him of his powers under these Rules;

        (ii)    secondly to secured creditors who have been able to prove their debts before the Tribunal in the manner provided in these Rules;

        (iii)    thirdly to the unsecured creditors in the manner approved by the Tribunal;

        (iv)    fourthly in payment of any surplus to the Owner.

    9. (1) All costs, charges and expenses incurred by the Trust in obtaining or attempting to obtain payment of any moneys on the non-performing asset or any asset acquired by the Trust in relation to or under the securities thereof including (without limitation) such payments as the Trust may consider expedient from time to time to make and is authorised by these Rules to make to any person acting on the instructions of the Trust in convention, maintaining, repairing, amending or improving, preserving or enhancing the value of the assets and all such further of other moneys as shall by virtue of the provisions of subrule (2) of this Rule be deemed to be included in the expression "expenses" shall–

    (a)    bear interest at the rate for the time being payable on the non-performing asset from the time of the same having been expended or incurred until the same shall be repaid;

    (b)    be repaid with interest as aforesaid.

    (2)     The expression "expenses" shall be deemed to include all costs, charges, claims, damages, expenses and (without prejudice to the generality of the foregoing) other money properly paid or incurred by the Trust under the Act–

    (a)    in any action, proceedings, claim or demand against or for the recovery of the assets;

    (b)    in any action proceedings or claim brought by or against the Trust for the enforcement, protection, preservation or improvement of the security created for non-performing asset;

    (c)    in connection with the preparations, negotiations and completion of disposal of assets concerned and any correspondences and attendances relating thereto;

    (d)    in effecting any registration or act which the Trust may deem necessary or expedient for the proper protection of its security; or

    (e)    to advocates, architects, surveyors or other professional or technical advisors of the Trust in respect of their costs, fees and disbursements for attendances made, advice given, correspondences written or other work done by such persons or any of them in connection with any of the matters referred to in the preceding paragraphs of this subrule.

    10. (1) Where the Trust becomes or is an unsecured creditor in respect of a non-performing asset the Trust will issue a notice in the newspapers calling upon other creditors, it any, to file their claims within a period of 30 days indicating in the said notice what information is required.

    (2) Upon the expiration of the Notice issued under the preceding subrule the Trust will analyse the claims and call for a meeting of all the creditors. The Trust will endeavour to get an agreement as to the manner of apportioning the proceeds of sale of the assets and that agreement is to be recorded before the Tribunal.

    (3) Where the Trust fails to reach an agreement with the majority of the other creditors the matter is to be referred to the Tribunal for a hearing to determine the matter.

    (4) Any creditor aggrieved by the decision of the meeting of creditors may appeal to the Tribunal within 14 days from the date the decision appealed against was made and the Tribunal will hold a hearing to determine the matter.

    11. The Trust will, where possible, give priority to ensure sale on a "going-concern" basis failing which the Trust will embark on a liquidation sale.

    12. The Trust shall have full and complete powers to determine values, prices and other terms and conditions for disposition of assets; as a means to that end the Trust will prepare its own rules and procedures for identification of potential purchasers, selling or disposing assets by way of competitive bidding or other preferred method.

    13. The validity of any sale or disposition concluded by the Trust under these Rules shall, except for fraud, breach or material misrepresentation on the part of the purchaser, be final and binding and enforceable against the Trust and all third parties.

    14. (1) Where the Trust or the purchaser of any such asset or property sold under the provisions of these Rules is resisted or obstructed by any person in obtaining possession of such asset or property, the Trust or the purchaser may make an application to the Tribunal complaining of such resistance or obstruction.

    (2) The Tribunal shall fix a day for investigating the matter and shall summon the party against whom the application is made to appear and answer the same.

    (3) Where the Tribunal is satisfied that the resistance or obstruction was occasioned without any just cause it shall direct that the applicant be put in possession.

    (4) The Tribunal may also, at the instance of the applicant, order the person against whom the application was made to be detained as a civil prisoner for a term which may extend to 90 (ninety) days.

    15. (1) Any Owner who is aggrieved by an act of the Trust may make an application to the Tribunal stating his complaint within a period of 21 (twenty-one) days from the date the act being complained of was made.

    (2) The Tribunal shall fix a day for investigating the matter and may summon the Trust to appear and answer any questions which the Tribunal may consider relevant or necessary for a decision on the complaint.

    * 16. (1) Any person who acquires assets or any part thereof of the owner shall, notwithstanding any agreement to the contrary, be liable for all the debts and obligations owing to a bank or financial institution or part of the said debts and obligations to the extent of the value of the assets acquired, for which he as transferor is liable, unless notice of the intended transfer has been published in accordance with the provisions of this Rule hereinafter provided not less than two months nor more than six months before the date when the transfer is to take effect.

{mprestriction ids="1,2,3"}

    (2) A person who has paid in good faith and without preference, in discharge or partial discharge of debts and obligations for which he became liable under the provisions of this Rule and for which he would not otherwise have been liable, an amount equal to the value at the date of transfer of the assets or any part thereof acquired by him shall not be liable further or otherwise under these Rules.

    (3) No action shall be instituted to recover any debt from or enforce any obligation against any person liable therefor under the provisions of this Rule but not otherwise, more than twelve months after the date of the transfer of the Non-Performing Asset concerned under the provisions of Rule 4 hereof.

    (4) The notice referred to in the subrule (1) shall contain the following particulars–

    (a)    The full name and the residential and postal addresses of the transferor;

    (b)    the nature of the business and the name or style under which and the full address at which the business has been carried on;

    (c)    the nature of the transaction (whether sale, exchange or otherwise) and the extent thereof;

    (d)    the date when the transfer is intended to take effect;

    (e)    the full name and the residential and postal addresses of the transferee;

    (f)    the full address where, and the name or style under which, the Transferee intends to carry on the business; and

    (g)    a statement as to whether the transferee is assuming all or any of the liabilities of the transferor.

    (5) Every such notice shall be signed by both the transferor and the transferee and shall be published in the Gazette and in two widely circulated local newspapers.

    (6) The production of the Gazette containing any such notice shall be prima facie evidence as against both the transferor and the transferee of the statements contained in the notice.

    (7) Nothing in this Rule shall relieve or be deemed to relieve either the Owner or transferee of the assets or part thereof from any liability to which he would otherwise be subject.

    (8) Nothing in this Rule shall affect any person acquiring assets of the Owner–

    (a)    from the Official Receiver or any trustee in bankruptcy;

    (b)    from the liquidator of any company;

    (c)    from an executor or administrator;

    (d)    by operation of law.

    * 17. Where the Trust decides to seize and dispose of assets of the Owner which did not form part of the security or collateral pledged to the bank or financial institution, the Trust shall:

    (a)    Give notice of fourteen (14) days to the Owner of its intention to seize and dispose of the Assets;

    (b)    at the expiry of the said notice of fourteen (14) days seize and dispose of the assets in accordance with the provisions of the Act.

    * 18. (1) Where there is any action or proceedings pending in any court in respect of any loan, advance or non-performing asset which is by the Act transferred to the Trust, the Trust shall notify the Registrar of the High Court and upon such notification the action or proceeding shall cease to be conducted in that Court.

    (2) The Registrar of the High Court shall cause the action or proceedings to be transferred to the Tribunal in accordance with the provisions of section 22 of the Act within thirty (30) days from the date of such notification.

FIRST SCHEDULE (i)
DEED OF ASSIGNMENT

(Rule 4(a))

    THIS DEED made the ........................... day of ......................... the year Two Thousand and

    BETWEEN ..............................................................................................................,

a body corporate established by/registered under ............................................. of Post Office Box Number ............................................................................. Dar es Salaam (hereinafter referred to as "The Assignor") of the one party.

    AND THE LOANS AND ADVANCES REALISATION TRUST, a body corporate established by the Loans and Advances Realisation Trust Act *, of Post Office Box Number 20555, Dar es Salaam (hereinafter referred to as "the Assignee") of the other part.

    WHEREAS in compliance with the provisions of the Loans and Advances Realisation Trust Act * the Assignor hereby agrees to assign all assets, rights and obligations attached to the non-performing asset(s) described hereinbelow to the Assignor.

NOW THEREFORE THESE PRESENTS WITNESSETH as follows:

    1. In compliance with the provisions hereinbefore mentioned and for value received, the Assignor hereby assigns to the Assignee its creditor's rights, title and interest in respect of funds amounting to ..........................................................................................................

(state amount involved) ....................................................................................................

due to it from ..................................................................................................................

(name the debtor) ............................................................................................................

(hereinafter referred to as "the Debtor") being payments arising under .......................................................................................................................................
(details of transaction which gave rise to the debt).

    2. The Assignor hereby confirms to the Assignee that:

    (i)    The transaction underlying the debt was properly entered into according to regulations applicable in Tanzania and the evidence of debt attached (attach relevant documents, Agreements, etc.) represents a valid obligation of aforesaid Debtors;

    (ii)    the Assignor is entitled to payment of the amount of the debt in full and that the said debt is not subject to set off, discount or other adjustments by the debtor;

    (iii)    the debt or any part thereof has not been pledged, assigned or otherwise transferred or encumbered in favour of any other party;

    (iv)    the Assignor's obligations in respect of the transactions which gave rise to the debt have been fully satisfied; and

    (v)    the Assignor shall not be entitled to make and shall not make any further claims against the Debtor in respect of this debt.

    3. The Assignor hereby undertakes to mail to the Debtor's last known address, by mail postage prepaid, a notice of this Assignment and a copy of such notice shall simultaneously be mailed to the Bank of Tanzania, Post Office Box Number ................................................, Dar es Salaam.

    IN WITNESS WHEREOF the parties have executed these presents on the day and year specified above.

    SEALED with the Common Seal of the Said ...............................................................

    DELIVERED in our presence this ............ day of ...................., 20.....

Name: .........................................................................................................................

Signature: ....................................................................................................................

Postal Address: ...........................................................................................................

                     ...........................................................................................................

Qualification: ................................................................................................................

Name: .........................................................................................................................

Signature: ....................................................................................................................

Postal Address: ............................................................................................................
                    .............................................................................................................

Qualifications: ...............................................................................................................

    SEALED with the Common Seal of the Said LOANS AND ADVANCES REALISATION TRUST and DELIVERED in our presence this ......................... day of ......................... 20.......

Name: ........................................................................................................................

Signature: ...................................................................................................................

Postal Address: ..........................................................................................................

Qualification: ...............................................................................................................

Name: ........................................................................................................................

Signature: ...................................................................................................................

Postal Address: ...........................................................................................................
                     ........................................................................................................

Qualification: ...............................................................................................................

FIRST SCHEDULE (ii)
DEED OF ASSIGNMENT

(Rule 4(a))

    THIS DEED made the ....................... day of ....................... the year Two Thousand and ..........

    BETWEEN ..............................................................................................................,

a body corporate established by/registered under ......................................................... of
Post Office Box Number ............................................................................. Dar es Salaam (hereinafter referred to as "The Assignor") of the one party.

    AND THE LOANS AND ADVANCES REALISATION TRUST, a body corporate established by the Loans and Advances Realisation Trust Act * of Post Office Box Number 20555, Dar es Salaam (hereinafter referred to as "the Assignee") of the other part.

    WHEREAS in compliance with the provisions of the Loans and Advances Realisation Trust Act * the Assignor hereby agrees to assign all assets, rights and obligations attached to the non-performing asset/s described hereinbelow to the Assignor.

NOW THEREFORE THESE PRESENTS WITNESSETH as follows:

    1. In compliance with the provisions hereinbefore mentioned, the Assignor hereby assigns to the Assignee its creditor's rights, title and interest in respect of funds amounting to .....................................................................................................................................

(state amount involved) ...................................................................................................

due to it from .................................................................................................................

(name the debtor) ...........................................................................................................

(hereinafter referred to as "the Debtor") being payments arising under ......................................................................................................................................
(details of transaction which gave rise to the debt).

    2. The Assignor hereby confirms to the Assignee that:

    (i)    The transaction underlying the debt was properly entered into according to regulations applicable in Tanzania and the evidence of debt attached (attach relevant documents, Agreements, etc.) represents a valid obligation of aforesaid Debtors;

    (ii)    the Assignor is entitled to payment of the amount of the debt in full and that the said debt is not subject to set off, discount or other adjustments by the debtor;

    (iii)    the debt or any part thereof has not been pledged, assigned or otherwise transferred or encumbered in favour of any other party;

    (iv)    the Assignor's obligations in respect of the transactions which gave rise to the debt have been fully satisfied; and

    (v)    the Assignor shall not be entitled to make and shall not make any further claims against the Debtor in respect of this debt.

    3. The Assignor hereby undertakes to mail to the Debtor's last known address, by mail postage prepaid, a notice of this Assignment and a copy of such notice shall simultaneously be mailed to the Bank of Tanzania, Post Office Box Number ....................
.................................., Dar es Salaam.

    IN WITNESS WHEREOF the parties have executed these presents on the day and year specified above.

    SEALED with the Common Seal of the Said ..................................

    DELIVERED in our presence this ............ day of ...................., 20.....

Name: ......................................................................................................................

Signature: .................................................................................................................

Postal Address: .........................................................................................................

                     .........................................................................................................

Qualification: ..............................................................................................................

Name: .......................................................................................................................

Signature: ..................................................................................................................

Postal Address: ..........................................................................................................
                    ..........................................................................................................

Qualifications: ............................................................................................................

    SEALED with the Common Seal of the Said LOANS AND ADVANCES REALISATION TRUST and DELIVERED in our presence this ............... day of ......................... 20.......

    DELIVERED in our presence this ............ day of ...................., 20.....

Name: .......................................................................................................................

Signature: ..................................................................................................................

Postal Address: .........................................................................................................

..................................................................................................................................

Qualification: ..............................................................................................................

Name: .......................................................................................................................

Signature: ..................................................................................................................

Postal Address: ..........................................................................................................
                     .......................................................................................................

Qualification: ..............................................................................................................

SECOND SCHEDULE

(A) AUTHENTICATION BY A NOTARY PUBLIC

(Rule 4(b))

    I .................................................................................................................................
of the City/Municipality/Township of ................................................. Tanzania Notary Public duly admitted and sworn, practising in the said City/Municipality/Township,

DO HEREBY CERTIFY AND ATTEST:

THAT on the day of the date hereof the Common Seal of ....................................................
......................................................................................................................................
......................................................................................................................................
having its registered/head office at ....................................................................................

Dar es Salaam, was affixed at the foot of the Deed of Assignment annexed hereto, in conformity with the regulations of the said .................. in my presence and that of

        (i)    ................................................................................................................

        (ii)    ................................................................................................................

of the said .....................................................................................................................

who signed in my presence at the foot of the said Deed of Assignment as witnessing the affixing of the said Seal;

    AND THAT the said Deed of Assignment being so sealed and signed is duly executed and binding on the said .........................................................................................................
.....................................................................................................................................
in accordance with the regulations thereof.

    IN TESTIMONY WHEREOF I have hereto set my hand and affixed my seal of office in the City/Municipality/Township of ..................... this ...................... day of ................ 20........

Signature: ..................................................
Name: .......................................................
Postal Address: .........................................
                    .........................................
Qualification: .............................................

(B) AUTHENTICATION BY A NOTARY PUBLIC

    I, ........................ ......................................................................................................
of the City/Municipality/Township of ..................................................................................
Tanzania, Notary Public duly admitted and sworn, practising in the said City/Municipality/Township.

    DO HEREBY CERTIFY AND ATTEST:

    THAT the signature set and subscribed at the foot of the Document annexed hereto is genuine, the same having been duly subscribed thereto in my presence by .............. whose identity I attest, of ...........................................................................................................
a body/corporate established by/registered under ...............................................................
......................................................................................................................................
......................................................................................................................................

having its registered/head office at ....................................................................................
Dar es Salaam Tanzania, and is a proper and competent Officer thereof to sign such Document on its behalf.

    IN TESTIMONY WHEREOF I have hereto set my hand and affixed my Seal of Office in the City/Municipality/Township of ................................................................. aforesaid, this ...................... day of ................... 20........

Signature: ................................................
Name: .....................................................
Postal Address: .......................................
                     ......................................
Qualification: ..........................................

THIRD SCHEDULE
NOTICE OF ASSIGNMENT OF DEBT

(Rule 4(c))

To: ............................................................

Debtor: .....................................................

Address: ..................................................

        RE:    Principal Amount of debt: ..............................................................................
                Due date: .....................................................................................................

                Type of Evidence of Debt: ..............................................................................

Dear Sirs,

    You are hereby given notice that the above debt owned by you has been assigned in whole to the Loans and Advances Realisation Trust by ................ as of the ........... day of ................................. 20........

.......................................
(Authorised Signatory)
.......................................
(Print Name)
......................................
(Print Title)

FOURTH SCHEDULE
CONFIRMATION OF ASSIGNMENT OF DEBT

(Rule 4(c))

Letter From: ..................................................................................................................
....................................................................................................................................

    Chief Administrator,
Loans and Advances Realisation Trust (LART),
CRDB Building,
9th Floor, Azikiwe Street,
P.O. Box 20555,
DAR ES SALAAM.

Dear Sirs,

    We write to confirm that we have assigned to the Loans and Advances Realisation Trust our rights to the debts appearing in the Appendix to this letter and that we do not claim any further interest in them.

    We further confirm that the Appendix contains a true and valid statement of the debt assigned.

    Yours faithfully,
.........................................................................................................................................

APPENDIX A
SCHEDULE OF DEBTS

DEBTOR

DUE DATE

BRANCH

LOAN OUTSTANDING

DEBT EVIDENCE

1.
2.
3.

We certify that this is a true and Valid Schedule of the Debt Obligations.

FIFTH SCHEDULE
AFFIDAVIT ON REGISTRATION OF INSTRUMENTS

(Rule 4(d))

THE LOANS AND ADVANCES REALISATION TRUST

(No. 6 of 1991)

    I, ........................................ of .................................... make oath and say as follows:

    1. That the ...................................................................... (the name of bank of financial institution) is the guarantee of the ............................................. (state name of instrument) registered under ................................................. (name of law under which registration made) as No. ........................ and made between ......................................................................... (state names of parties to the instrument as appearing therein).

    2. The said .................................................... (state name of instrument) was registered on the ............ day of ............. 20........

    3. The said .................................................... (state name of instrument) is still subsisting and in full force and effect.

...............................................................
Signature of deponent

Sworn at ...................................................

this ................... day of ................ 20........

Before me .................................................

THE LART LOANS RECOVERY TRIBUNAL RULES

(Section 19(3))

[11th July, 1997]

G.N. No. 309 of 1997

PART I
PRELIMINARY PROVISIONS (rules 1-2)

    1. These Rules may be cited as the LART Loans Recovery Tribunal Rules.

    2. In these Rules unless the context otherwise requires–

    "act" means and includes any decision, determination, advise or recommendation made under a power or duty conferred or imposed by the provisions of the Act;

    "petitioner/applicant" means a person who is entitled under the Rules to bring action under the provisions of the Act;

    "Chairman" means the Chairman appointed under section 18(2)(a) of the Act and includes a Vice-Chairman;

    "member" means a person appointed under section 18(2)(b) of the Act;

    "Registrar" means the Registrar of the Tribunal appointed under section 22 of the Act;

    "respondent" means a person against whom an action has been preferred in the LART Loans Recovery Tribunal;

    "the Tribunal" means the LART Recovery Tribunal established under section 18(1) of the Act.

PART II
GENERAL ADMINISTRATIVE AND PROCEDURAL PROVISIONS (rules 3-9)

    3. (1) Every petition shall be instituted by filing in the registry a petition in quantiplicate signed by the petitioner or his agent and presented to the Registrar at the registry.

    (2) The petition shall be accompanied by copies of documents which the petitioner intends to rely at the hearing of the petition.

    (3) A document which ought to be produced by the petitioner when the petition is presented, shall not without the leave of the Tribunal, be received in his evidence on his behalf at the hearing of the petition.

    (4) The petition shall set forth, concisely and under distinct heads facts giving rise to a cause of action without giving any arguments or narrative, and such facts shall be numbered consecutively.

    (5) A prescribed fee and any reasonable deposit as the Registrar shall reasonably assess and affix shall be paid to defray costs.

    (6) Nothing in this rule applies to documents produced for a cross examination of the witnesses, or handed to a witness merely to refresh his memory.

    4. (1) No petition shall be entertained in the Tribunal later than fifteen (15) days after the act being complained of was done.

    (2) The Tribunal may for good cause allow a petition to be instituted after the elapse of fifteen days (15) from the day the act has been complained of was done.

    5. Where a petition has been duly instituted summons shall be issued to the respondent not later than two days from the date on which the petition is instituted:

    Provided that no summons shall be issued under this rule when the respondent has appeared at the presentation of the petition, and has proved his identification to the satisfaction of the Tribunal and has admitted the petitions claim.

    6. Save where the Tribunal requires the personal appearance of the respondent, a respondent in respect of whom a summons to appear is issued may appear–

    (a)    in person; or

    (b)    by an advocate duly instructed and able to answer all material questions relating to the petition; or

    (c)    by an advocate accompanied by some person able to answer all such questions.

    7. The day for appearance of the respondent shall be fixed with reference to the current business of the Tribunal, the place of residence of the respondent and the time necessary for the service of the summons; and the day shall be so fixed as to allow the respondent sufficient time to enable him to appear and answer on such day.

    8. Where the summons has been issued, the respondent, may before the first hearing or within such time as the Tribunal may permit, present to the Tribunal a written reply to the petition.

    9. (1) Where the respondent has been required to present a written reply under Rule 8 and fails to present the same within the time fixed by the Tribunal, the Tribunal may pronounce judgment against him or make such order in relation to the petition, as the case may be, and as it thinks fit.

    (2) When all pleadings have been completed, the Tribunal shall fix a day of hearing on an application by either of the parties, but, if no application is made within seven days of the date on which the petition is deemed to be ready for hearing, the Tribunal on its own motion shall fix the hearing date.

PART III
HEARING OF PETITIONS (rules 10-18)

    10. (1) The Tribunal shall have power to dismiss any petition summarily if it considers that the petition does not disclose any cause of action.

    (2) Where the Tribunal dismisses a petition summarily, notice of such dismissal shall be served upon the petitioner or his agent.

    (3) The Registrar shall have the power to enter a consent judgment where it is requested by the parties.

    11. (1) The Tribunal may at any time, and on its own motion or on the application of any party adjourn the proceedings to a date fixed or to be fixed by it.

    (2) Where proceedings are adjourned to a date to be fixed, the Tribunal shall, after fixing the date for the resumed hearing, give notice of its or of the adjournment to the parties or their agents.

    12. On the day fixed or on any other day to which the hearing may be adjourned the Tribunal shall first hear the petitioner or his agent and then the respondent or his agent shall have the right of reply.

    13. Where the petitioner appears, and the respondent having been duly served does not appear, the hearing of the petition shall proceed in the absence of the respondent, unless the Tribunal for any sufficient reason, sees fit to adjourn the hearing.

    14. (1) Where the respondent appears and the petitioner does not appear the Tribunal shall dismiss the petition.

    (2) Where an order is made to dismiss the petition the petitioner may apply to the Tribunal to set it aside if he satisfies the Tribunal that the summons was not duly served, or that he was prevented by any sufficient and reasonable cause from appearing when the suit was called on for hearing.

    (3) The Tribunal shall make an order to set aside the dismissal upon such terms as to costs, payment into the Tribunal or otherwise as it thinks fit and shall appoint a day for proceeding with the petition.

    15. (1) If after hearing the petitioner and the reply by the respondent, the Tribunal is of the opinion that evidence be produced or witness summoned.

    (2) The Tribunal shall order the parties to produce such evidence or call witnesses to clarify on issues raised which the Tribunal may by order seek to be clarified.

    16. Where the Tribunal requires any evidence to be produced or witnesses to be called, it shall record its reasons for so doing.

    17. When the Tribunal orders evidence to be produced or witnesses to be called, the Tribunal shall specify the points to which the evidence is to be confined, and record on its proceedings.

    18. The Tribunal may, in its discretion, receive evidence by affidavit in addition to or in substitution for oral evidence.

PART IV
JUDGMENT (rules 19-21)

    19. The Tribunal after hearing the parties or their agents and evidence if any ordered to be produced, and testimony of witness ordered to testify, shall pronounce judgment in public either at once or on some future date of which notice shall be given to the parties or their agents.

    20. (1) The judgment of the Tribunal shall be in writing and shall state–

    (a)    the points for determination;

    (b)    the decision;

    (c)    the reasons for the decision;

    (d)    a relief which the parties are entitled and the time that it is pronounced be signed and dated by the Chairman or the Registrar who shall certify it.

    (2) Such judgment may be pronounced not withstanding the absence of all the members who comprised the Tribunal or any of them, and the judgment may be read by the Chairman or the Registrar.

    21. The Tribunal shall have power to pass any decree and make any order similar to those passed by the High Court of Tanzania and such decree or orders shall have the same effect as if the same were passed by the High Court of Tanzania in accordance with the provisions of the Civil Procedure Code *.

PART V
DECREE (rules 22-23)

    22. (1) The decree shall bear the date and the day on which the judgment was pronounced.

    (2) The decree shall contain the number of the petition, the names and description of the petitioner and respondent, and clear specification of the relief granted or other adjudication made.

    (3) The decree shall also state amount of costs incurred in the trial, and by whom out of what property, and in what proportion such costs and the costs in the suit are to be paid.

    (4) The decree shall be signed by the Chairman who passed it or the Registrar.

    23. Certified copies of the judgment and decree shall be furnished to the parties on application to the Tribunal and on payment of fees.

PART VI
FEES AND COSTS (rules 24-27)

    24. (1) The fees which shall be set by the Chairman and published in the Government Gazette shall be payable in respect of the matters and services specified therein.

    (2) The fee payable on lodging any document shall be payable at the time when the document is lodged.

    25. (1) The Tribunal may in its discretion, either before the respondent is called to appear and answer or afterwards on the application of the respondent, demand from the petitioner security for the costs of the petition.

    (2) The amount of security shall be such as the Chairman or the Registrar shall in his discretion assess and fix.

    (3) Where such security is not furnished within such time as appointed the Tribunal shall dismiss the petition.

    (4) The Tribunal may at any time, if it thinks fit, direct that further security for costs be given and may direct that security be given for the payment of the past costs relating to the matters in question in the petition.

    26. The Tribunal may make such order as to the costs of a petition as it shall deem just.

    27. (1) When making any decision as to the payment of costs, the Tribunal may assess them or direct them to be taxed, and any decision as to the payment of costs, not being a decision whereby the amount of the costs is assessed shall operate as a direction that the costs be taxed.

    (2) Where the Tribunal directs that costs of a petition shall be taxed, such costs shall be taxed in accordance with the provisions of the Advocates Remuneration and Taxation of Costs Rules, 1991.

    (3) The Registrar shall be a Taxing Officer with power to tax the costs, as between party and party.

    (4) The remuneration of an advocate by his client in respect of any petition shall be subject to taxation in the Tribunal and shall be governed by the rules and scales applicable to proceedings in the High Court.

    (5) For the purposes of execution in respect of costs, the decision of Tribunal directing taxation and the certificate of the Taxing Officer as to the result of such taxation shall together be deemed to be a decree.

PART VII
FINAL PROVISION (rules 28-29)

    28. Without prejudice to the provisions under these Rules, where any matter in a proceeding before the Tribunal is not expressly provided for by these Rules, the Tribunal shall have the power to make such orders as may be necessary for the ends of justice or to prevent abuse of due process under the law.

    29. Temporary injunctions and interlocutory orders when granted shall be in force for a period of thirty days only from the date of the order and shall thereafter expire unless the Tribunal extends such period for a further period which the aggregate shall not exceed sixty days, upon being satisfied, on the application of the holder of such injunction that the applicant has diligently been taking steps so settle the matter complained of and such extension sought is in the interest of justice, necessary or desirable. No application for an injunction or interlocutory order shall be heard ex parte. {/mprestriction}