crdb bank ltd vs issack mwamasika others 2018 tzca 36 7 august 2018

crdb bank ltd vs issack mwamasika others 2018 tzca 36 7 august 2018

The appellant bank was legally justified in retaining the security documents due to the personal guarantees executed by Mr. I. B. Mwamasika for the 3rd respondent's outstanding loan. The existence of a banker's lien and guarantee provided sufficient legal basis for refusal to release the securities, and the trial court erred in awarding damages for loss of business opportunity.

Citation
crdb bank ltd vs issack mwamasika others 2018 tzca 36 7 august 2018
Parties
Appellant: CRDB Bank Limited; 1st Respondent: Issack B. Mwamasika; 2nd Respondent: Registered Trustees of Dar es Salaam International School Trust Fund; 3rd Respondent: EDBP & GD Construction Co. Ltd
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
7 August 2018
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Banker's Lien, Personal Guarantee, Damages for Loss of Business Opportunity, Mortgage Security, Procedural Objections
Source Language
English
Banking Law Contract Law Tort Law Banker's Lien Personal Guarantee Damages for Loss of Business Opportunity Mortgage Security Procedural Objections

Case Brief

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Parties

CRDB Bank Limited

Appellant

Issack B. Mwamasika

1st Respondent

Registered Trustees of Dar es Salaam International School Trust Fund

2nd Respondent

EDBP & GD Construction Co. Ltd

3rd Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the appellant bank had legal justification to retain security documents after the 2nd respondent cleared its loan
  2. 2 Whether personal guarantees executed by Mr. I. B. Mwamasika entitled the bank to withhold securities
  3. 3 Whether damages for loss of business opportunity were properly awarded

Ratio Decidendi

The appellant bank was legally justified in retaining the security documents due to the personal guarantees executed by Mr. I. B. Mwamasika for the 3rd respondent's outstanding loan. The existence of a banker's lien and guarantee provided sufficient legal basis for refusal to release the securities, and the trial court erred in awarding damages for loss of business opportunity.

Court Disposition

appeal allowed

Orders

  • Judgment of the trial High Court set aside
  • Costs to follow the event