gotham ck mbele vs efatha foundation ltd and another 2020 tzhc 627 31 march 2020

gotham ck mbele vs efatha foundation ltd and another 2020 tzhc 627 31 march 2020

Set-off is not permissible as 1st and 2nd respondents are separate legal entities; appellant's shares in 1st respondent are unconnected to loan agreement with 2nd respondent; no evidence shares were pledged as security or that company rules permit set-off; appeal dismissed.

Citation
gotham ck mbele vs efatha foundation ltd and another 2020 tzhc 627 31 march 2020
Parties
Appellant: Gotham C. K. Mbele; 1st Respondent: Efatha Foundation Ltd; 2nd Respondent: Efatha Bank Ltd
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
31 March 2020
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal dismissed with costs
Legal Topics
Set Off, Shareholder Rights, Loan Agreements, Corporate Entities
Source Language
English

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Parties

Gotham C. K. Mbele

Appellant

Efatha Foundation Ltd

1st Respondent

Efatha Bank Ltd

2nd Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether shares held by appellant in 1st respondent company can be set-off against loan owed to 2nd respondent
  2. 2 Whether 1st and 2nd respondents are legally one entity for purposes of set-off
  3. 3 Whether appellant's shares were pledged as security for the loan

Ratio Decidendi

Set-off is not permissible as 1st and 2nd respondents are separate legal entities; appellant's shares in 1st respondent are unconnected to loan agreement with 2nd respondent; no evidence shares were pledged as security or that company rules permit set-off; appeal dismissed.

Court Disposition

appeal dismissed with costs

Orders

  • Appeal dismissed
  • Appellant to pay costs