moshi electrical light co ltd others vs equity bank t ltd others 2017 tzhc 2027 24 july 2017

moshi electrical light co ltd others vs equity bank t ltd others 2017 tzhc 2027 24 july 2017

The sale of suit property no. 1 was illegal and ineffectual as it was not preceded by the mandatory 60 days notice of default to the mortgagor as required by law. The intended sale of suit properties nos. 2 and 3 was also illegal for want of statutory notice. The protection of a bona fide purchaser under section 135 of the Land Act does not apply as there was no evidence of registration of transfer or compliance with statutory requirements.

Citation
moshi electrical light co ltd others vs equity bank t ltd others 2017 tzhc 2027 24 july 2017
Parties
Plaintiff: Moshi Electrical Light Co. Ltd; Plaintiff: Living Rogati Moshy; Plaintiff: John Mapesa Shinyela; Defendant: Equity Bank (T) Ltd; Defendant: M/S Nkya Co. Ltd; Defendant: Arobogast Shirima
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
24 July 2017
Procedural Posture
Land Case / Judgment
Outcome
Judgment for the plaintiffs
Legal Topics
Mortgage, Power of Sale, Notice of Default, Injunction, Damages, Registration of Transfer
Source Language
English

Case Brief

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Parties

Moshi Electrical Light Co. Ltd

Plaintiff

Living Rogati Moshy

Plaintiff

John Mapesa Shinyela

Plaintiff

Equity Bank (T) Ltd

Defendant

M/S Nkya Co. Ltd

Defendant

Arobogast Shirima

Defendant

Procedural Posture

Land Case / Judgment

  1. 1 Whether the sale of suit property no. 1 was legal and effectual
  2. 2 Whether the intended sale of suit properties nos. 2 and 3 was legal and effectual
  3. 3 What reliefs the parties are entitled to

Ratio Decidendi

The sale of suit property no. 1 was illegal and ineffectual as it was not preceded by the mandatory 60 days notice of default to the mortgagor as required by law. The intended sale of suit properties nos. 2 and 3 was also illegal for want of statutory notice. The protection of a bona fide purchaser under section 135 of the Land Act does not apply as there was no evidence of registration of transfer or compliance with statutory requirements.

Court Disposition

Judgment for the plaintiffs

Orders

  • The sale of suit property no. 1 is nullified and set aside.
  • Defendants are permanently restrained from selling suit properties nos. 2 and 3 without complying with legal requirements under the Land Act.