LAND CASE NO 223 2022

LAND CASE NO 223 2022

The Second Plaintiff did not apply for or receive subsequent loans beyond the initial TZS 250,000,000 facility; the First Plaintiff only guaranteed the initial loan. Subsequent loans and guarantees were orchestrated by the Third Defendant, who is liable for the outstanding debt. No fraud was proven against the Second Plaintiff or First Plaintiff. The First Defendant must discharge the mortgage and return the title deed to the First Plaintiff. Damages are denied due to lack of evidence of loss or suffering.

Citation
LAND CASE NO 223 2022
Parties
1st Plaintiff (main Suit) / 2nd Defendant (counterclaim): Grace Richard Matiku; 2nd Plaintiff (main Suit) / 1st Defendant (counterclaim): Richard Mwera Nicholaus Matiku; 1st Defendant (main Suit) / Plaintiff (counterclaim): Azania Bank Limited; 2nd Defendant (main Suit): Equator Auto Mech Limited; 3rd Defendant (main Suit) / 3rd Defendant (counterclaim): Ramesh Naran Bhai Patel; 4th Defendant (main Suit): Mark Auctioner & Court Brokers Co. Ltd
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
1 January 2022
Procedural Posture
Land Case / Final Judgment
Outcome
Main suit partly allowed; counterclaim partly allowed.
Legal Topics
Loan Agreements, Mortgage, Guarantee, Fraudulent Transactions, Counterclaim, Damages
Source Language
English
Banking Law Land Law Contract Law Fraud Loan Agreements Mortgage Guarantee Fraudulent Transactions +2 more

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Parties

Grace Richard Matiku

1st Plaintiff (main Suit) / 2nd Defendant (counterclaim)

Richard Mwera Nicholaus Matiku

2nd Plaintiff (main Suit) / 1st Defendant (counterclaim)

Azania Bank Limited

1st Defendant (main Suit) / Plaintiff (counterclaim)

Equator Auto Mech Limited

2nd Defendant (main Suit)

Ramesh Naran Bhai Patel

3rd Defendant (main Suit) / 3rd Defendant (counterclaim)

Mark Auctioner & Court Brokers Co. Ltd

4th Defendant (main Suit)

Procedural Posture

Land Case / Final Judgment

Legal Issues

  1. 1 Whether the Second Plaintiff applied for and was granted various facilities by Bank M Tanzania
  2. 2 Whether the First Plaintiff guaranteed/secured any other loan besides the initial loan
  3. 3 Whether the First Plaintiff and Third Defendant in counterclaim guaranteed loans of the Second Plaintiff

Ratio Decidendi

The Second Plaintiff did not apply for or receive subsequent loans beyond the initial TZS 250,000,000 facility; the First Plaintiff only guaranteed the initial loan. Subsequent loans and guarantees were orchestrated by the Third Defendant, who is liable for the outstanding debt. No fraud was proven against the Second Plaintiff or First Plaintiff. The First Defendant must discharge the mortgage and return the title deed to the First Plaintiff. Damages are denied due to lack of evidence of loss or suffering.

Court Disposition

Main suit partly allowed; counterclaim partly allowed.

Orders

  • First Defendant to immediately discharge and handover title No. 125019 on Plot No. 2274, Block 'L' Mbezi Area, Kinondoni, Dar es Salaam to First Plaintiff.
  • Third Defendant in counterclaim (Ramesh Naran Bhai Patel) to pay TZS 780,402,993.47 and USD 148,905.32 with interest at court rate of 7% from date of judgment to full payment.