maendeleo bank plc vs faith medical t clinics 3 others 2022 tzhccomd 381 2 december 2022

maendeleo bank plc vs faith medical t clinics 3 others 2022 tzhccomd 381 2 december 2022

The 1st defendant breached the credit facility agreement and the 2nd, 3rd, and 4th defendants are liable as guarantors under the contract of guarantee; only two securities were disposed by public auction, leaving an outstanding balance; plaintiff is entitled to recover the outstanding amount, agreed interest, penalty, general damages, and costs.

Citation
maendeleo bank plc vs faith medical t clinics 3 others 2022 tzhccomd 381 2 december 2022
Parties
Plaintiff: Maendeleo Bank PLC; 1st Defendant: Faith Medical Tanzania Clinics; 2nd Defendant: Joyce Thomas Muzuma; 3rd Defendant: Martin Mung’ong’o; 4th Defendant: Joseph Thomas
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
2 December 2022
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for plaintiff
Legal Topics
Loan Default, Guarantee Liability, Mortgage Enforcement, Auction Sale, Pecuniary Jurisdiction
Source Language
English
Banking Law Contract Law Property Law Loan Default Guarantee Liability Mortgage Enforcement Auction Sale Pecuniary Jurisdiction

Case Brief

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Parties

Maendeleo Bank PLC

Plaintiff

Faith Medical Tanzania Clinics

1st Defendant

Joyce Thomas Muzuma

2nd Defendant

Martin Mung’ong’o

3rd Defendant

Joseph Thomas

4th Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether defendants breached the credit facility agreement
  2. 2 Whether securities were disposed
  3. 3 Whether outstanding amount remains after disposition

Ratio Decidendi

The 1st defendant breached the credit facility agreement and the 2nd, 3rd, and 4th defendants are liable as guarantors under the contract of guarantee; only two securities were disposed by public auction, leaving an outstanding balance; plaintiff is entitled to recover the outstanding amount, agreed interest, penalty, general damages, and costs.

Court Disposition

Judgment for plaintiff

Orders

  • Declaration of breach of credit facility agreement and guarantee
  • Defendants to pay plaintiff TZS.60,861,055