Case Digest

Jambo Food Products Company Limited v Hassan Issa Shikila

Can Money Already Under Attachment Serve as Security for Stay of Execution?

The High Court considered whether money already preserved under a garnishee attachment could itself constitute sufficient security while a stay application remained pending.

Download Full Judgment [PDF] Miscellaneous Labour Application No. 15437 of 2026
01

The Background

Jambo Food Products Company Limited applied to stay enforcement of a Garnishee Order Absolute for TZS 13,020,000 issued in Labour Execution No. 9140 of 2026. The company had already filed Revision Application No. 11509 and Application No. 11672 seeking a stay of execution.

The immediate application sought temporary preservation so that payment under the garnishee order would not overtake the pending stay application. The respondent raised objections concerning the supporting affidavit and alleged that the application was frivolous and vexatious.

02

The Legal Issue

The Court considered whether the affidavit complied with Rule 24(3)(c) and (d), whether the objections raised pure points of law, and whether a limited stay was necessary to keep Application No. 11672 effective while protecting the successful party’s interest in the award.

03

The Court’s Decision

The first preliminary objection was marked abandoned, the objection under Rule 24(3)(c) and (d) was dismissed, and the frivolous-and-vexatious objection was overruled because it required examination of contested facts.

The Court granted a limited stay until Application No. 11672 was determined. NMB Bank Plc was ordered to continue holding TZS 13,020,000 under attachment without releasing it to either party. The stay would lapse automatically when the pending application was decided, and each party bore its own costs.

04

The Reasoning

Reasoning 01

Substance determined compliance

Rule 24(3) does not prescribe special headings or a fixed formula. Read as a whole, the affidavit disclosed the legal controversies and expressly stated the relief sought.

Reasoning 02

The application was preservatory

The Court avoided deciding the merits of the earlier stay application. Its narrower task was to prevent payment from rendering that pending proceeding ineffective.

Reasoning 03

Section 92(3) supported a limited stay

The Labour Court’s statutory power to stay enforcement of an award could operate on the garnishee process through which the award was being enforced.

Reasoning 04

The attached sum was adequate security

The money remained identifiable in the garnishee’s hands and unavailable to the applicant. Keeping it attached protected the respondent, while an additional guarantee would duplicate security for the same amount.

Representation

Ernest Alfred Mhagama
Counsel for the Applicant
Innocent Kisigiro
Counsel for the Respondent