20170724 TZHC Mwanza

20170724 TZHC Mwanza

Sale of suit property no. 1 was illegal and ineffectual due to lack of mandatory 60 days notice to mortgagor; intended sale of properties nos. 2 and 3 also illegal for same reason; bonafide purchaser protection under section 135 of Land Act does not apply absent registration and compliance; plaintiffs entitled to nullification of sale, injunction, nominal damages, and costs.

Citation
20170724 TZHC Mwanza
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 plaintiffs
Legal Topics
Mortgage Sale, Statutory Notice, Bonafide Purchaser, Injunction, Damages
Source Language
English
Property Law Contract Law Mortgage Sale Statutory Notice Bonafide Purchaser Injunction Damages

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

Legal Issues

  1. 1 Legality and validity of sale of mortgaged property for want of statutory notice
  2. 2 Legality of intended sale of additional mortgaged properties
  3. 3 Entitlement to reliefs including damages and injunction

Ratio Decidendi

Sale of suit property no. 1 was illegal and ineffectual due to lack of mandatory 60 days notice to mortgagor; intended sale of properties nos. 2 and 3 also illegal for same reason; bonafide purchaser protection under section 135 of Land Act does not apply absent registration and compliance; plaintiffs entitled to nullification of sale, injunction, nominal damages, and costs.

Court Disposition

Judgment for plaintiffs

Orders

  • Sale of suit property no. 1 nullified and set aside
  • Defendants restrained permanently from selling suit properties without complying with statutory requirements