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ippmedia.com: Shell loses case against Scandinavia

2006-07-24 09:10:15
By Dominic Nkolimwa

It is business as usual yesterday for the Scandinavia Express Services Limited after the company won liquidation respite from the Commercial Court in Dar es Salaam late last week.

Dismissing prayers from Shell Tanzania and other creditors of the company, High Court’s Judge Nathalia Kimaro ruled declaring the company bankrupt would not be beneficial to either party.

According to the Judge, Shell Tanzania Limited failed to prove the winding up order it sought would be beneficial to all creditors of Scandinavia proportionally.

The company, provides essential transport services to the East Africa and beyond and declaring it bankrupt would negatively affect over 2, 000 passengers it handles daily, the judge noted.

He was of the opinion it was normal to big companies sometimes to undergo economic shake-ups.

If declared bankrupt, the national economy of the country would be affected as the company was paying big taxes, he said.

The judge cited also that the company was a major employer.

The Judge ordered the company to draw a nine-month plan on how it would settle all its liabilities.

Shell Tanzania Limited took Scandinavia to court seeking it liquidation for failure to settle dues from sale of fuel.

Creditors like Diamond Motors, Sameer Tanzania Limited and CRDB Bank wire in support of winding up of the company while National Bank of Commerce (NBC) Tanzania Limited, Standard Chartered Bank, Euro Africa Bank opposed the prayer.

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