Malawi Case Law

Fargo Limited v Ecobank Malawi Limited

Fargo Limited v Ecobank Malawi Limited (Commercial Case 101 of 2021) [2023] MWHC 45 (7 December 2023)

Court

High Court of Malawi

Case number

Commercial Case 101 of 2021

The imposition of penalty interest on a secured debt is not commercially justifiable and is unconscionable. The Defendant cannot be compensated through both penalty interest and security. The penalty interest clause is penal and unenforceable; thus, the transaction must be reopened and the outstanding balance recalculated excluding penalty interest.

Source excerpt

• Penalty interest
• Unconscionable conduct
• Loan recovery
• Secured transactions

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Tamando Lama Chokotho v FDH Bank PLC

The court refused to continue an interlocutory injunction over charged property already sold and transferred, and dismissed the claim with costs.

• Interlocutory injunction
• Chargee's power of sale
• Private treaty sale
• Reserve price
• Loan default
• Disclosure on without notice application

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Dalitso General Suppliers Limited v National Bank of Malawi (MSCA Misc. Application 19 of 2023)

Dalitso General Suppliers Limited v National Bank of Malawi (MSCA Misc. Application 19 of 2023) [2023] MWSC 42 (7 August 2023)

Court

Malawi Supreme Court of Appeal

Case number

MSCA Misc. Application 19 of 2023

The Supreme Court of Appeal dismissed a stay application, holding that the challenged High Court order vacating an injunction was inchoate and not appealable.

• Stay of execution
• Interlocutory injunctions
• Appeals
• Loan facilities
• Security for debt
• Stay-of-execution

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Nyirenda & Ors. v Rop & Anor. (MSCA Civil Appeal No. 51 of 2015)

Nyirenda & Ors. v Rop & Anor. (MSCA Civil Appeal No. 51 of 2015) [2016] MWSC 140 (25 April 2016)

Court

Malawi Supreme Court of Appeal

Case number

MSCA Civil Appeal No. 51 of 2015

The Supreme Court of Appeal held that employees’ wage claims did not outrank PTA Bank’s secured claim over charged property where there was no formal insolvency or winding up.

• Priority of claims
• Employee benefits
• Mortgage enforcement
• Receivership
• Application of employment act
• Application of companies act

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