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Tanzania Judgment

TZHC

20090311 TZHC Dar es Salaam

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Source document

01

Holding and result

The applicant is an interested party whose rights may be directly affected by the outcome of the proceedings and therefore must be joined; the issue of bona fide purchaser status will be determined on the merits in the main application.

Court disposition

Application allowed in part

Orders

  • The applicant is joined as an interested party in the proceedings.

02

Material facts

Parties

Pascal Elias Malya

Applicant/interested Party

The Building Center Establishment

1st Respondent

Bath Romeo Saen

2nd Respondent

Ally Shaban Semindu

3rd Respondent

Saen Investment & Construction

4th Respondent

Amounts and remedies

  • Value of New Construction by Applicant: TZS 70,000,000

03

Procedural history

  1. Posture

    Civil Revision / Ruling on Application for Joinder as Interested Party

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that he purchased the property at a public auction after the 4th respondent defaulted on a loan, the title was transferred to his name, and he invested in constructing a new structure worth TZS 70 million. He sought to be joined as an interested party and to be declared a bona fide purchaser for value without notice.
Respondent
The respondents did not challenge the prayer for joinder but vigorously contested the prayer for a declaration of bona fide purchaser status.

05

Court’s reasoning

  1. 01

    Court's reasoning

    A party whose interests may be directly affected by the outcome of proceedings should be joined as an interested party in the interest of justice.

06

Ratio, limits and disposition

Ratio decidendi

The applicant is an interested party whose rights may be directly affected by the outcome of the proceedings and therefore must be joined; the issue of bona fide purchaser status will be determined on the merits in the main application.

Obiter and limits

  • The merits regarding the order that led to the auction and sale of the mortgaged property are not addressed at this stage.

Court disposition

Application allowed in part

  • The applicant is joined as an interested party in the proceedings.

Source and reliance status

TZHC · 11 March 2009

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Judgment text

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Source document

TZHC

Judgment· 11 March 2009

20090311 TZHC Dar es Salaam

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IN THE HIGH COURT OF TANZANIA (AT DAR ES SALAAM DISTRICT REGISTRY)

AT DAR ES SALAAM CIVIL REVISION NO. 18 OF 2004 (Original Civil Case No. 207 of 2003) PASCAL ELIAS MALYA ........ APPLICANT /INTERESTED PARTY

VERSUS THE BUILDING CENTER ESTABLISHMENT .... 1 5 T RESPONDENT BATH ROMEO SAEN ..................................... 2No RESPONDENT ALLY SHABAN SEMINDU ............................. 3Ro RESPONDENT SAEN INVESTMENT & CONSTRUCTION ........ 4TH RESPONDENT

RULING · KALEGEYA, J.: The applicant has two main prayers: "l. ...... court be pleased to· allow the Applicant be joined . as an interested party or the Respondent in these provisional proceedings. 2. ........ court be pleased to declare that the applicant/interested party is a bonafide purchaser for value without notice of any effect and that he should not be jeopardized in owning the said house by any decision between the parties to this revision......... " A background thereof is as follows. 1 The 4th Respondent/Interested Party fail~d to. service a loan facility extended by the 1st Respondent and secured by a legal mortgage over the 3rd Respondent's house erected on Plot No. 661, Block E, LD 50338, Sinza Area with Certificate of Title No. 24206. in consequence thereof, the mortgaged property was sold to the Applicant by Unyangara Auction Mart, Ltd. Court Brokers at a public auction. The main matter before the Court is an application for an order calling for record of the lower Court for examination and reversal of the ruling of Mwakandi, RM dated 4/2/2004. The Applicant's concern is that if he is not joined as an interested party his rights might be prejudiced. Regarding the present Application, only the Applicant put in his supporting affidavit. The Respondent's did not file any Counter- affidavit. Apart from the above stated facts, in his submissions, the Applicant stated

further that after the sale at the public auction the legal process was duly executed and the property title was changed 2 - (', into his name; that he proceeded and demolisbed the old structure and constructed a new one worth shs. 70 million. In their very brief submission the Respondents did not challenge the 1st prayer but they vigorously contested the 2nd prayer. Without going into the merits regarding whatever order that led to the auction and sale of the mortgaged property, on the facts of this case, I am persuaded that indeed the Applicant is an interested party who, in the interest of justice, cannot be shut away from the controversy at hand. This is so because a decision may subsequently be reached that may directly affect his interests. As for the 2nd prayer, that can only be decided when the merits of the main application are being determined. For reasons explained above, the application succeeds in part. The application to have the Applicant joined as an interested party stands allowed. 3 ... .:, DATED at DAR ES SALAAM this { }fL day of March, 2009. 4 l

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