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The Commercial Division of the High Court of Tanzania (popularly known as the “Commercial Court”) is conferred with the jurisdiction to hear and determine banking matters, including Islamic banking matters in the country. Zanzibar, on the other hand, has recently introduced the Commercial Court as a division of the Zanzibar High Court under Act No. 9 of 2013. The Commercial Court of Tanzania is established as per the High Court Rule 5A of the (High Court Registries, 1984). The court was established as a result of expansion in business, increase of economic activities, liberalization of the economy and privatization in the country (Commercial Court Manual, n.d.). The court caters for the whole financial industry by settling disputes efficiently, effectively and speedily. Apart from the Management Committee, the court also has a User’s Committee which advises the court on matters of practice, selecting assessors, giving suggestion and acts as a “watchdog”.The Commercial Court has both original and appellate jurisdictions over cases of commercial significance. A commercial dispute is defined as a civil case having commercial significance including formation, governance and liability of a business or commercial organizations (Commercial Court Manual, n.d.). It can also enforce an award arising from the commercial arbitration award. The court can determine cases having a value of not less than 30 million shillings for movable and 50 million shillings for immovable properties[4]. The panel of the court must consist of not less than two assessors who are generally knowledgeable in the field concerning the suit. These assessors must be selected from the list provided by the court’s User’s Committee [High Court Registries, Rule 5B and Civil Procedure Code (CPC), O.XVIII, R.1A]. There are court fees which act as safety valve in the sense that it scares potential litigants from litigating commercial disputes, thereby reducing the number of litigated matters (Commercial Court Manual, n.d.). These fees are 3 per cent for a claim valuing not less than 200 million shilling (US$100,724), and 1 per cent payable in addition to the 3 per cent for cases valuing more than 200 million shillings (GN No. 428 of 2005). Despite these fees, there are still backlog of cases in the court. An examination of the performance summary of the court from September 1999 to September 2010 shows that, as the years go by, the cases pending at the end of the previous year continue to increase. This is also proved by an incredible increase in the number of days taken to settle a case at the court from 60 days in 1999 to 359 days as of September 2010 (Commercial Court Manual, n.d.). Twenty per cent of the cases were settled through mediation and the remaining 80 per cent by the court. Till this moment, there has not been any report of an Islamic banking matter being litigated in the court.
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