Alqassim Trading Company Limited Vs Tanzania Ports Corporation (Land Cases 53 of 2017) 2022 TZHC 12238 (19 August 2022)
Alqassim Trading Company Limited Vs Tanzania Ports Corporation (Land Cases 53 of 2017) 2022 TZHC 12238 (19 August 2022)
JUDGMENT
Date of last order: 29/06/2022
Date of Judgment: 19/08/2022
E.E. KAKOLAKI, J.
The Plaintiff herein a limited liability company duly registered under
Companies Act, [Cap. 212 R.E 2002] is suing the defendant a public
the agreement and that, the abrupt increase of rent of the leased premises
Shillings Two Hundred and Thirty Eight Million One Hundred and Fifty Five
Thousand One Hundred and Eight cents (Tshs. 238,155,100.08), being value
1
The plaintiff is thus claiming for following reliefs; (a) A declaratory order that
that the abrupt increase of rent by 485% without negotiations with the
Tanzania entity to lease office space to the Plaintiff which is also a Tanzanian
Shilling. The other reliefs are (d) That, the defendant either pays back or
deduct as rent after negotiations with the plaintiff Tanzania shillings two
hundred and thirty eight million one hundred and fifty five thousand one
damages as the honourable court may determine for each lapsing day from
the day the defendant refused to negotiate a new lease agreement with the
plaintiff ;(f) Costs and any other relief that the honourable court may deem
it fit to grant.
the plaint can be simply stated thus, on 9th February, 2009 the defendant
2
open space to be referred as suit/demised premises located next to the
office for a monthly rent of United Dollars 72.50. Upon payment of annual
rent and preparation of architectural drawings the plaintiff engaged M/S A &
P Engineering and Construction Co. Ltd for Tanzania Shillings Sixty Nine
Million One Hundred Fourteen Thousands Nine Hundred and Fifty (Tshs.
According to the Plaintiff up to the time of filing this suit the complete
ticketing office had attained the value of Tshs. 238,155,100.08 which is being
tenancy from 2009 to 2016 renewed yearly before the last agreement
expired on 31st January, 2017 when she requested for renewal of the
March 2017, she received a letter from the defendant with lease agreement
for the year 2017 indicating an increased rent from USD $ 600.00 per month
charged in the last agreement to USD $2,910.00 per month which had hiked
requested for joint discussions over the rent of 2017 lease agreement but
the defendant vide her letter dated 4th of July 2017, availed her no choice
3
than to either to sign the new lease agreement and pay the rent with seven
(7) days or else vacate the premises otherwise will be evicted and have her
plaintiff for reduction of rent rate or compensation for the costs incurred for
office construction, the defendant turned her ears deaf hence the present
suit.
When served with the plaint, defendant filed her defence by way of written
statement of defence calling the plaintiff to strict proof of her claims save for
the facts the existence of lease agreement for an open space renewable
annually, the fact that the plaintiff requested for renewal of tenancy
agreement vide her letter of 20th September, 2016, and joint discussions of
her the matter was not for negotiations but rather execution.
During the final pre-trial conference the following issues were proposed by
the parties and framed for determination of parties’ dispute by this court:
4
2. Whether the plaintiff is entitled to compensation to the tune of Tshs.
During the hearing the plaintiff was represented by Capt. Ibrahim Bendera
and Godfrey Ukwonga, learned advocates while the defendant enjoyed the
legal service of Mr. Shija Charles , Ramadhan Ngogo and Kulwa Mumbuli, all
learned State Attorneys. Plaintiff’s case was built by two witnesses Omary
Ally Said (PW1), marketing manager of the plaintiff and Mohamed Omary
Co. Ltd as well as three (3) documentary exhibits. The documentary exhibits
are Bill of quantities for construction of ticketing office (Exhibit PE1), a letter
increase of rent to USD 2910 per month (Exhibit PE2) and the letter dated
23/04/2017 from the defendant rejecting to reduce the rent (Exhibit PE3).
On the defendant’s side one witness Zainabu Pierson Mauya (DW1), the
5
16/6/2012 (Exhibit DE1). At the end of the trial both parties filed their final
to.
Briefly it was plaintiff’s case through PW1 that, in 2009 the plaintiff leased
USD 72 before the same was increased to USD 145 from the year 2010 to
2013 and later on to USD 600 from 2014-2016. He said, after execution of
and the contractor engaged to erect the marketing and ticketing office on
the suit premises which was completed in 2010. Bill of quantities for the
es salaam was tendered and admitted a exhibit PE1. This witness went on
stating that, the plaintiff enjoyed her peaceful tenancy until 2017 when she
accompanied with a contract, notifying her of the increased rent rate to USD
2910 per month, with an annual rent invoice of USD 41,2005.60 for the year
2017. He said as the rent had hiked for almost 500% the plaintiff asked the
defendant to consider reducing it but the later rejected through her letter
dated 25/04/2017 (Exhibit PE3) with an option of either to sign the contract
6
or vacate the suit premises, the options which she failed to pick any as a
result defendant closed their office. PW1 concluded by telling this court that,
the plaintiff’s prayer before this court was for an order of this Court to TPA
to enter into negotiation with them on new contract over the leased open
space for reducing rent which had increased almost for 500%. In the
pay her general damages for inconvenience caused as well as costs of the
case.
rent before and the same is normal or not PW1 responded that, indeed there
was such increase of rent by the defendant and that in any lease agreement
such increase is normal. When referred to Exhibit PE1 and asked what was
building at Posta Ilala Municipality and not the ticketing office. When further
referred to Exhibit PE3 and asked whether the letter and BOQ were referring
to the same place, PW1 responded that, according to that letter the leased
space was for baggage room which is at Sokoine Drive but the proposed
construction as per the BOQ was meant to be done at Posta. When referred
7
to paragraph 7 of the plaint and questioned as to whether at the time of
institution of this suit there was a valid contract between parties, PW1
response was that, there was none. And finally when referred to Exhibit PE1,
PE2 and PE3 as to whether there was evidence that permission for
construction of office was sought from TPA, PW1 said it is stated nowhere
The next witness for prosecution was Mohamed Omary Manguchi (PW2),a
contractor testified to the effect that, the Plaintiff was their client as in 2009
room area for Tshs.69,114,950/=. This witness said, in that work they
submitted the bill of quantities basing on the above figure. When cross
writing and if there was such proof, this witness confessed that, it is true the
In his re-examination he stated that, the he was not asked to tender the said
plaintiff’s office and that his knowledge of the site can prove to the court
8
that what he testified was nothing but truth. That marked the end of
plaintiff’s case.
On the defence side, Zainabu Pierson Mauya (DW1) being an employee since
the plaintiff’s claims. She said, having been charged with duties to manage
land use and buildings as well as responsible for leasing land and building
defendant’s land /premises and buildings which starts with the request letter
from the tenant followed by letter of acceptance of the request from the
defendant before the tenant is issued with letter of offer carrying conditions
to be met her/him including the annual rent rate. Then tenant is required to
respond in writing before she/he is issued with a lease agreement. She went
on to testify that, she knows the Plaintiff as their tenant whom they had
entered into lease agreements for different periods, the last on being of the
year 2015/2016 as the first lease agreement was in 2009/10 renewable every
year until 2016. The tenancy agreement between the plaintiff and defendant
of 2012 (Exhibit DE1) was tendered during her testimony. DW1 also
identified exhibit PE1 as a tenancy agreement for open space at the baggage
9
room, area belonging to the defendant. This witness said, it is one of the
condition in their agreements that, any tenant leasing that premises or part
of it has to erect a structure for his/her use on her own costs and demolish
erection/building costs are borne by the tenant and those terms are
the tenancy agreement. She voiced that, under clause 2(h) exhibit DE1 after
expiry or termination of the contract the tenant has to demolish any structure
on the demised premises at his/her own costs and hand over the clean land
without any claim of costs. In response to the claim of hiked rent rate to
USD 2910 DW1 stated that, in 2017 rent was raised up to USD 15 per square
meter due to increased value of the premises, size of the leased premises
and demand in the market She said, a tenant was charged in USD because
as an authority TPA charges are made in United States Dollars. However the
tenant could pay in Tanzania shillings basing on the prevailing rate of the
Plaintiff, she testified the same ended up in the annual year 2015/2016 as
when they offered her the new agreement for 2016/2017, she refused to
sign on assertion that rent had increased. According to her testimony, the
10
rent of USD 15 per square meter was applied to all tenants and they all
When cross examined DW1 stated that, the plaintiff never met her to
the rent rate before issuing the same to the tenant, she mentioned the same
over the leased premises and then the same is communicated to the tenant
When asked as to why the defendant denied the plaintiff renewal of tenancy
and why increased rent rate, DW1 said in 2017 they issued the plaintiff with
one sided signed agreement for her signature but she refused to sign and
return the copies complaining on the raised rent. DW1 responded further
that, it is the location that increases the land rent as always land appreciates
instead of depreciating. DW1 admitted that they evicted the plaintiff as she
was occupying the premises without valid lease agreement while awaiting
for determination of this case so that she removes her belongs and
the premises the tenant has to submit the drawings and BOQ to the TPA for
11
them to evaluate by their engineers as their insistence is on erection of
that is because when the premise is required for other uses they would not
authority in which rents are fixed. After several demands to sign the
agreement and pay the due rents without positive response they locked the
When referred to paragraph 5 of exhibit DE1, and asked as to why they did
not issue the defendant with notice of termination of contract, DW1 said the
notice could not be issued as the plaintiff was no longer their tenant for not
As alluded to above in the end of defence side evidence both counsel for the
parties requested for court leave to file final written submission, the prayer
which was cordially granted. I appreciate the brief submission from both
apposite to restate the principles under which this Court will be guided with.
It is well settled principle of law under sections 110 and 111 of the Evidence
12
Act, [Cap. 6 R.E 2019] that, any party who alleges existence of any fact or
claim of right must prove that the same exists and the onus of so proving
lies on the party who would fail if no evidence is adduced at all on claimed
facts or right. It is further trite principle of law under section 2(3) of the
Evidence Act that, the standard of proof in civil matters is on the balance of
numbers of both this Court and Court of Appeal such as decisions in Abdul
Karim Haji Vs. Raymond Nchimbi Alois and Another, Civil Appeal No.
Vs. Theresia Thomasi Madaha, Civil Appeal No. 53 of 2017 and Berelia
(All CAT- Unreported). The above principles were well put by Court of Appeal
observed that:
’’It is trite law and indeed elementary that he who alleges has
a burden of proof as per section 110 of the Evidence act, Cap.
6 [R.E 2002]. It is equally elementary that since the dispute
was in civil case, the standard of proof was on a balance of
13
probabilities which simply means that the Court will sustain
such evidence which is more credible than the other…’’
say;
justified in law. For just determination of this issue I wish to revisit first
the law related to leasing of land or landed properties in our country as found
in Part IX of the Land Act, [Cap 113 R.E 2019] (the Land Act). The law under
occupancy to lease that right or part of it to any other person for a definite
period or for the life of the lessor subject to the conditions which may be
required under the Act. For easy reference, I quote the provision as
hereunder:
14
78.-(1) Subject to the provisions of this Act, the holder
of a granted right of occupancy may lease that right of
occupancy or part of it to any person for a definite
period or for the life of the lessor or of the lessee or for
a period which though indefinite, may be terminated
by the lessor or the lessee, and subject to any
conditions which may be required by this Act or any
other law applicable to leases or which he may think
fit.
consideration termed rent dully paid to the lessor by the lessee, though the
definition of term ’’rent’’ is not provided under the Act. Mitra’s Legal &
Similar definition of the term ’’rent’’ is given by Blacks Law Dictionary, 8th
15
’’Consideration paid, usually periodically, for the use or
occupancy of property’’
the lessee for the use and occupation of the formers property. The same is
connection with the occupation of the premises such as tax payable to the
Act provides for the conditions under which rent payable under lease
is located;
16
(d) location of the land; and
Now back to the issue at discussion having considered the oral evidence and
lease agreement between the parties from 2009 for a definite period of 12
months subject to renewal each year which lasted 2016. And that under such
tenancy period rent chargeable increased from USD 72 in 2009 to USD 600
2016. It is further undisputed fact that, upon request for renewal of tenancy
agreement for 2017, the plaintiff was informed about an increase of the rent
from USD 600 to USD 2910 per month, the amount she found to be on higher
side hence refused to sign the agreement in return sought for negotiation
on its reduction, the request which was rejected by the defendant. As to why
such huge increase, DW1 stated, the change of rent rate was effected to all
tenants based on the increase of the value of the demised area, increase of
the size of the leased area by the plaintiff as well as the demand which was
also on increase. The plaintiff who was duty bound to prove to the Court on
the balance of probabilities that, the said rent rate was illegally charged did
not counter the defendant’s evidence with regard to the reasons for increase
of the said rent which, I find to be tandem with conditions set under section
17
78(3) of the Land Act, for determination of the amount payable under a
lease. These include the size of land, market value of the land, location and
condition of the land, which Dw1 said all were considered. Further to that
there was unchallenged evidence by DW1 that, the said rent rate of USD
2910 was reached after consultation with the Chief Government valuer, who
The above notwithstanding, I find the lessor being the owner of the demised
premises had all the rights to change the rent. The reasons for such findings
are not far-fetched. One, as it was stated by the defendant’s witness the
value of the land always appreciate and also the market value of the
there is no any clause in the former agreement (exh. DE1) which could
inferred and interpreted against the defendant that, any changes in relation
thus limiting the defendant from increasing the rent to be charged. All the
above considered and given the fact that the plaintiff has failed to supply the
court with evidence that, it was mandatory for the defendant to negotiate
with her before raising the rent rate, I find the increase of the said rent to
18
USD 2910 by the defendant was justifiable. Therefore the first issue is
answered in affirmative.
of law under section 110(1) and 111 of the Evidence Act, as alluded to above,
that he who alleges must prove the existence of that fact and the onus of so
proving lies on the party who alleges. It is also the trite law that the standard
of proof in all civil cases is on the balance of probabilities. See the cases of
Godfrey Sayi Vs. Anna Siame Mary Mndolwa, Civil Appeal No. 114 of
plaintiff’s evidence during the trial through PW1 and PW2 that, she had
demised premises. Mr. Ukwonga for the Plaintiff submits that since the
plaintiff incurred such costs and has been paying rents without default then
resisting that assertion for want of evidence as to how such costs was
reached. I am at one with the learned State Attorneys’ proposition that the
19
plaintiff’s claim on the incurred costs for construction of the said office is
wanting in merit. Apart from alleging that in construction of the said office
contractor was engaged neither PW1 nor PW2 tendered any documentary
evidence to justify the asserted costs of Tshs. 69,114,950/- leave alone the
contradiction between PW1 and PW2 on the claimed costs incurred during
relying on the BOQ exhibit PE1 says it was Tshs. 238,155,100.08, PW2 on
the other side states it was Tshs. 69,114,950/-. This being material
specific amount attained as costs for the construction of the said office.
Even if the costs incurred by the plaintiff in construction of the offices were
established still I could hold she was not entitled to any compensation. I so
hold as there is no any evidence tendered by her to prove that, she is entitled
renewal every year expired in 2016 and there was no any claim of breach of
20
such expired agreement during lease period. It follows therefore that, the
relationship between the parties also expired when the lease period expired
and it was upon signing of the new agreement for 2017 when the lessee
would be entitled to claim any right against the defendant. It however not
in dispute that, it is the Plaintiff who is/was not ready to sign the new
contract on assertion that its term on rent is against her favour. Since there
claimed amount. The Court of Appeal in the case of Zuberi Augustino Vs.
Anicet Mugabe, (1992) TLR 137 at page 139 had this to say on proof of
special damages:
’’It is trite law, and we need not cite any authority, that special damages
the cost incurred in construction of the office space by the plaintiff, is not
only wanting but also unfounded as the same is contradicted by the BOQ
(Exhibit PE1) and the testimony of PW2 who testified the construction was
Tshs. 69,114,950/= and goes against the agreement that existed before
21
The third issue which is on whether the plaintiff is entitled to general
damages. The law is settled that general damages are awardable at the
on record able to justify the award. Although the same are awarded at the
discretion of the Court but the reasons for so awarding must be assigned.
See the case of Alfred Fundi Vs. Geled Mango & others, Civil Appeal
No.49 of 2017.
In this case the Plaintiff also requested for general damages of which the
plaintiff from the loss suffered as well as acting as a room for compensation
for the mental pains and sufferings underwent by him/her out of the
defendant’s act or wrong. This was the position of the Court in the case of
Lugakingira J (as he then was) the decision which was cited with approval
by the Court of Appeal in the case of Peter Joseph Kilibika and Another
22
“the position as it therefore emerges to me is that general
damages are compensatory in character. They are intended to
take care of the plaintiff’s loss of reputation, as well as to act
as a solarium for mental pain and suffering”.
In this case the Plaintiff’s claim rooted from the increase of rent by the
defendant. As discussed and found above it is the law which empowers the
holder of right of occupancy to lease it and determine the rent basing on the
to that the Plaintiff who is obliged to prove the injury she suffered for the
defendant’s act if any failed to discharge that duty as it was held in the case
of Barelia (supra). It is from that failure I find the third issue is answered
In addressing the last issue as to what relief the parties are entitled to, the
law is clear under section 110 of the Law of Contract Act, [Cap. 345 R.E
object. That being the position this court finds that, since the Plaintiff opted
not to sign a new lease agreement with the defendant for the year 2017,
this court can neither force her to sign nor force the lessor to negotiate rent
23
is tantamount to doing contrary to section 110 of the law of contact which
plaintiff deserves nothing than dismissal of his claims for want of merit.
That said and done, this suit is hereby dismissed with costs.
It is so ordered.
E. E. KAKOLAKI
JUDGE
19/08/2022.
The Judgment has been delivered at Dar es Salaam today 19th day of
August, 2022 in the presence of Ms. Nuru Jamal, advocate for the Plaintiff,
and Mr. Asha Livanga, Court clerk and in the absence of for the Defendant.
Right of Appeal explained.
E. E. KAKOLAKI
JUDGE
19/08/2022.
24