eco bank tanzania vs pristine properties limited and 3 others 2021 tzhccomd 2058 19 april 2021

eco bank tanzania vs pristine properties limited and 3 others 2021 tzhccomd 2058 19 april 2021

The defendants breached the credit facility agreement by failing to repay the loan as agreed. The defence that the plaintiff was required to convert the loan from TZS to USD was previously adjudicated and dismissed in Civil Case No. 161 of 2017, making the issue res judicata. The plaintiff is entitled to recover the outstanding amounts, interest, penalties, and to enforce the mortgage upon default.

Citation
eco bank tanzania vs pristine properties limited and 3 others 2021 tzhccomd 2058 19 april 2021
Parties
Plaintiff: Ecobank Tanzania Limited; 1st Defendant: Pristine Properties Limited; 2nd Defendant: Muslim Shivji Karim; 3rd Defendant: Gulam Mohamedali Punjani; 4th Defendant: Sabri Ally Saad
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
19 April 2021
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff
Legal Topics
Loan Default, Breach of Contract, Guarantee Enforcement, Mortgage Foreclosure, Interest and Penalties
Source Language
English
Banking Law Contract Law Civil Procedure Loan Default Breach of Contract Guarantee Enforcement Mortgage Foreclosure Interest and Penalties

Case Brief

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Parties

Ecobank Tanzania Limited

Plaintiff

Pristine Properties Limited

1st Defendant

Muslim Shivji Karim

2nd Defendant

Gulam Mohamedali Punjani

3rd Defendant

Sabri Ally Saad

4th Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether the defendants breached the loan facility agreement
  2. 2 To what reliefs are the parties entitled

Ratio Decidendi

The defendants breached the credit facility agreement by failing to repay the loan as agreed. The defence that the plaintiff was required to convert the loan from TZS to USD was previously adjudicated and dismissed in Civil Case No. 161 of 2017, making the issue res judicata. The plaintiff is entitled to recover the outstanding amounts, interest, penalties, and to enforce the mortgage upon default.

Court Disposition

Judgment for the plaintiff

Orders

  • Defendants to jointly and severally pay Tshs 3,708,134,236.45 and USD 292,120.35 with defaulting interest, penalties, and charges as of 31 August 2018.
  • Defendants to pay interest on the outstanding amounts at 19% per annum for TZS and 8% per annum for USD from due date to judgment.