fbme bank ltd vs makumira filling station ltd others 2017 tzhccomd 8 6 october 2017

fbme bank ltd vs makumira filling station ltd others 2017 tzhccomd 8 6 october 2017

The Defendants breached the Advance Payment Guarantee Agreement by failing to repay the Plaintiff after the Plaintiff paid under the guarantee. The Plaintiff is entitled to recover the outstanding sum, interest, and costs, but not general damages, as the principal award is compensatory.

Citation
fbme bank ltd vs makumira filling station ltd others 2017 tzhccomd 8 6 october 2017
Parties
Plaintiff: FBME Bank Limited; 1st Defendant: Makumira Filling Station Limited; 2nd Defendant: Charles Aquiline Makoi; 3rd Defendant: Calister Aquiline Makoi
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
6 October 2017
Procedural Posture
Commercial Case / Ex Parte Proof After Failed Settlement and No Defence Filed
Outcome
Judgment for the Plaintiff
Legal Topics
Advance Payment Guarantee, Breach of Contract, Mortgage Security, Interest on Decretal Sum, Costs
Source Language
English
Contract Law Banking Law Civil Procedure Advance Payment Guarantee Breach of Contract Mortgage Security Interest on Decretal Sum Costs

Case Brief

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Parties

FBME Bank Limited

Plaintiff

Makumira Filling Station Limited

1st Defendant

Charles Aquiline Makoi

2nd Defendant

Calister Aquiline Makoi

3rd Defendant

Procedural Posture

Commercial Case / Ex Parte Proof After Failed Settlement and No Defence Filed

Legal Issues

  1. 1 Whether the Defendants breached the Advance Payment Guarantee Agreement with the Plaintiff
  2. 2 What remedies are available to the parties

Ratio Decidendi

The Defendants breached the Advance Payment Guarantee Agreement by failing to repay the Plaintiff after the Plaintiff paid under the guarantee. The Plaintiff is entitled to recover the outstanding sum, interest, and costs, but not general damages, as the principal award is compensatory.

Court Disposition

Judgment for the Plaintiff

Orders

  • Defendants jointly and severally to pay T.shs 230,186,269.23 to the Plaintiff
  • Interest at 16% per annum from 1st August 2014 to date of judgment