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Tanzania Judgment

TANZLII

CIVIL APPLICATION NO 658 217 OF 2024 DEUS WILBARD MPAPI ANOTHER v STANBIC BANK 2 OTHERS

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

Where the decree is for vacant possession and the suit property remains in the applicant's possession, a commitment bond to maintain the property in the same condition suffices as security for stay of execution.

Court disposition

Application granted

Orders

  • Execution of the decree of the trial tribunal is stayed pending hearing and determination of the intended appeal
  • Each applicant must furnish a commitment bond within 14 days that the suit property shall remain in the same condition as at the date of judgment
  • No order as to costs

02

Material facts

Parties

Deus Wilbard M Papi

Applicant

Legram A.N.G. Limited

Applicant

Stanbic Bank

Respondent Counsel: Paschal Kihamba, Benson Mphatso

Majembe Auction Mart Ltd

Respondent Counsel: Paschal Kihamba, Benson Mphatso

Robert Mzena

Respondent Counsel: Paschal Kihamba, Benson Mphatso

Amounts and remedies

  • Loan Amount: TZS 150,000,000
  • Security Value Requested by Respondent: TZS 97,000,000

03

Procedural history

  1. Posture

    Civil Application / Application for Stay of Execution Pending Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The suit property itself should suffice as security for due performance of the decree since the decree is for vacant possession.
Respondent
A bank guarantee equivalent to the value of the suit property (TZS 97,000,000.00) should be furnished as security for due performance of the decree.

05

Court’s reasoning

  1. 01

    Mohamed Masoud Abdallah and Others v. Tanzania Road Haulage (1980) Ltd (Civil Application No. 58/17 of 2016) [2019] TZCA 198; Mapius Otieno v. Machimu Mayara (Civil Application No. 279/8 of 2024) [2024] TZCA 515; Rose Benedict v. Janet Evarist Njau and Others (Misc. Civil Application No. 311/02 of 2024) [2024] TZCA 508; Dr Luis B. Shija v. Kellu Kamo Lukas (Civil Application No. 2009/14 of 2024)

    In a decree for vacant possession, the suit property itself can serve as adequate security for due performance if it remains in the same condition.

06

Ratio, limits and disposition

Ratio decidendi

Where the decree is for vacant possession and the suit property remains in the applicant's possession, a commitment bond to maintain the property in the same condition suffices as security for stay of execution.

Court disposition

Application granted

  • Execution of the decree of the trial tribunal is stayed pending hearing and determination of the intended appeal
  • Each applicant must furnish a commitment bond within 14 days that the suit property shall remain in the same condition as at the date of judgment
  • No order as to costs

Source and reliance status

TANZLII · 1 January 2024

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Judgment reading view

Judgment text

The complete available source text.

Source document

TANZLII

Judgment· 1 January 2024

CIVIL APPLICATION NO 658 217 OF 2024 DEUS WILBARD MPAPI ANOTHER VERSUS STANBIC BANK 2 OTHERS

IN THE COURT OF APPEAL OF TANZANIA

AT PAR ES SALAAM CIVIL APPLICATION NO. 658/17 OF 2024 DEUS WILBARD M PAPI..................... ..................................,1st APPLICANT LEGRAM A.N.G. LIM ITED.........................................................2 nd APPLICANT

VERSUS STANBIC B A N K .......................................................................1st RESPONDENT MAJEMBE AUCTION MART LTD .................. ................ . 2nd RESPONDENT ROBERT MZENA ................. ...... ........................................... 3 rd RESPONDENT (Application for stay of Execution of the Judgment of the High Court (Land Division) at Dar es Salaam) (Luvanda^JJ dated the 19th day of July, 2016 in Land Case No. 2 of 2024

RULING 3rd h &. 6th September, 2024 MAIGE. J.A.: In 2015, the second applicant procured a loan of TZS 150,000,00.00 from the first respondent which was secured by, among others, mortgage over the first applicant's house at Plot No. 7 Block B, Kinondoni Hananasif with Certificate of Title No. 86331 (the suit property). In 2020, the first applicant was charged with an economic offence and, while under prosecution, the suit property was sold to the third respondent in realization of the mortgage. When the first applicant was released on in 2021, the applicants commenced a suit at the District Land and Housing Tribunal for Kinondoni (the trial court) i challenging the sale of the suit property. In his written statement of defence, the third respondent raised a counterclaim for vacant possession of the suit property. At the end of the trial, the applicants' suit was dismissed and the counterclaim granted. Consequently, the first applicant was ordered to yield vacant possession of the suit property to the third respondent. The applicants appealed to the High Court of Tanzania, Land Division (the High Court) but in no avail. Still aggrieved, they have lodged a notice of appeal pending which, they are now moving the Court under rule 11(1), (4), (5) and (6) for stay of execution of the decree. At the hearing, the first applicant appeared in person. In his capacity as the director, he

was also representing the second applicant. On their part, the respondents enjoyed the services of Mr. Paschal Kihamba and Benson Mphatso, both learned advocates. Right from the outset, Mr. Kihamba informed me that the respondents are conceding to the application provided that the applicants furnishes a security for due performance of the decree in the form of a bank guarantee of TZS 97,000,000.00 being the value of the suit property. The first applicant had a different view. To him, since the decree sought to be stayed is vacant possession, the suit property itself can suffice as a security. I have examined the notice of motion, affidavits both in support and in reply and I agree with Mr. Kihamba that all the three conditions for grant of 2 stay of execution including, an undertaking to furnish security in due performance of the decree have been fulfilled. The debate, it would appear, is on what should be the appropriate form of security. While for the respondents it is insisted that it be in the form of bank guarantee, for the respondent the suit property itself can serve as a security. As I said above, the decree involved in this matter is for vacant possession of the suit property which is refutably in the possession of the applicants although title thereon has already been changed into the name of the third respondent. It is a fact that, if the intended appeal turns out to

be against the applicants, the performance of the decree on the part of the first applicant will obviously be by yielding vacant possession of the suit property to the third respondent. Therefore, in so long as the suit property remain as it is, the performance of the decree can be made without requesting the applicants to pay the value of the same. That being the case, the performance of the decree can be secured if there be commitment on the part of the applicants that, the suit property shall remain in the same position as it was. The Court took a similar position in among others, the cases of Mohamed Masoud Abdallah and Others v. Tanzania Road Haulage (1980) Ltd (Civil Application No. 58/17 of 2016) [2019] TZCA 198 (24 June 2019; TANZLII) and Mapius Otieno v. Machimu Mayara (Civil Application No. 279/8 of 2024 [2024] TZCA 515 (2 July 2024;TANZLII), Rose Benedict v. Janet Evarist Njau and Others (Misc. Civil Application No. 311/02 of 2024) 3 [2024] TZCA 508 (27 June 2024; TANZLII) and Dr Luis B. Shija v. Kellu Kamo Lukas (Civil Application No. 2009/14 of 2024 In the event, and for the foregoing reasons, I find the application with merit and it is granted. Accordingly, the execution of the decree of the trial tribunal is stayed pending hearing and determination of the intended appeal on condition that each of the applicants furnish a commitment bond, within 14 days from the date hereof that, the suit property shall remain in the same condition as it was on the date of pronouncement of the judgment, the decree of which is the subject of the execution at the executing court. No order as to costs in the circumstances. DATED at DAR ES SALAAM this 6th day of September, 2024. I. J. MAIGE

JUSTICE OF APPEAL The Ruling delivered this 6th day of September, 2024 in the presence of Applicant in person and in the absence of the Respondent, is hereby certified as a true copy of the original. 4

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Mohamed Masoud Abdallah and Others v. Tanzania Road Haulage (1980) Ltd (Civil Application No. 58/17 of 2016) [2019] TZCA 198

Case cited

Mapius Otieno v. Machimu Mayara (Civil Application No. 279/8 of 2024) [2024] TZCA 515

Case cited

Rose Benedict v. Janet Evarist Njau and Others (Misc. Civil Application No. 311/02 of 2024) [2024] TZCA 508

Case cited

Dr Luis B. Shija v. Kellu Kamo Lukas (Civil Application No. 2009/14 of 2024)

Case cited

Rule 11(1), (4), (5) and (6) of the Court of Appeal Rules

Legislation

Legislation referenced in the available case record.

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