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DIB boss, textiles  company case over  145bn/- payments  pushed back

DIB boss, textiles company case over 145bn/- payments pushed back

HEARING of execution proceedings involving the Director of Deposit Insurance Board (DIB) of the Bank of Tanzania (BoT), Mr Richard Malisa and Coast Textiles Limited, over implementation of court’s decree for 145bn/- payments has been delayed for 13 more days.

This followed the transfer of High Court’s District Registrar, Crisencia Kisongo, who had been assigned to determine the matter. Initially, the district registrar had scheduled to hear the application for execution of the decree on November 30 this year.

However, when the parties, including Advocate Joseph Rutabingwa, for Coast Textiles Limited – the applicant, and Legal Officer from the DIB, Mr Aclay Chaula, went to attend the hearing session were told that the matter could not proceed because of the transfer in question.

Under such circumstances, the hearing was adjourned to December 13, 2021 before the High Court goes for Christmas vacation.

Coast Textiles Limited, a local company, has decided to seek the intervention of the High Court in Dar es Salaam, after failure by FBME Bank, whose operations were taken over by the BoT, to implement the judgment given by Judge Aloysius Mujulizi in 2015, which is more than six years ago, on such payments.

The company is requesting the sum of 145,946,500,641/- be realized from the DIB, the Liquidators of FBME Bank, default of which the Director of DIB be held accountable. Such a move by Coast Textiles Limited to file the execution proceedings comes few days after government and parliament authorities expressed concerns over failure by relevant bodies or defeated litigants to execute court judgments.

Records show that the local company has been in court corridors since 1997, which is 24 years, pursuing her rights against the FBME Bank Limited, which was later taken over by the BoT having being implicated with money laundering crimes to protect Tanzanians customers.

The High Court delivered the judgment in the matter on July 27, 2015, which is more than six year, but such decree has not been executed todate.

At some point in time, the Managing Director of Coast Textiles Limited, Mr Sudhir Lakhanpal, sought intervention of the Indian High Commission on the matter.

However, such efforts could not bore any fruits, a move that forced the businessman to file the execution proceedings in question. At a certain point, the BoT had promised to settle the amount having taking over the management of the Bank and upon conclusion of all court cases surrounding the matter.

According to the application lodged by Mr Rutabingwa, there is no any case, which is pending before the court involving the payments in question, following the dismissal of several attempts by the Central Bank to frustrate the enforcement of the decree.

Coast Textiles Limited was at all material times a customer of FBME Bank Limited since 1997 and had been granted an overdraft facility by Trust Bank, through its branch in Kenya.

But the amount involved, which is about $600,000, was not credited to Coast Textiles Limited suppliers in India.

A dispute ensued relating to the repayment of the overdraft, leading Delphis Bank, the predecessors of FBME Bank Limited to consolidate two credit facilities. Coast Textiles Limited claimed that the concentration of the two credit facilities was wrong and in breach of the agreement.

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Author: DAILYNEWS REPORTER

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