The Appellant was a limited liability company incorporated in Tanzania. It operated a current account with the Respondent bank at its City Branch. On 27th February, 2008, the Appellant received cheque No. 000003 drawn by Ms. J.O. Investment Company Limited, for the sum of Tshs. 250,320,000/= which was deposited in the said account on the same day. Initially the cheque was returned to the payee with the endorsement “Confirmation of the Drawer Required”. On 5th March, 2008 the cheque was re-deposited. On the 10th March, 2008, the Appellant drew requisition for a banker’s cheque in favour of the Respondent in the sum of Tshs. 250,000,000/=. The cheque was however dishonoured with the endorsement “effects not cleared”.
The Appellant then instituted a suit in the High Court (Commercial Division) claiming that as a result of the Respondent’s negligence, the Appellant had suffered damages, by way of the Tshs. 250,320,000/= which was illegally debited in his account, and Tshs. 45,000,000/= per month, from March, 2008 as loss of earnings, for which it was claiming compensation together with the attendant general damages, interests and costs. The High Court dismissed the suit hence the appeal to the Court of Appeal.