JUDGMENT MWAJI GROUP LTD VS CRDB BANK

JUDGMENT MWAJI GROUP LTD VS CRDB BANK

The consent judgment was set aside on the ground of fraud because the 3rd defendant, who signed the deed of settlement on behalf of the plaintiff, was not a director, secretary, or principal officer duly authorized to bind the company. There was no evidence of authority, and acts by unauthorized persons cannot bind the company. Fraud was thus established, rendering the consent judgment void ab initio.

Citation
JUDGMENT MWAJI GROUP LTD VS CRDB BANK
Parties
Plaintiff: Mwaji Group Workshop Ltd; 1st Defendant: CRDB Bank PLC; 2nd Defendant: MEM Auction Mart; 3rd Defendant: Allan Mwile Mwaigaga
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
13 December 2024
Procedural Posture
Land Case / Judgment
Outcome
Suit allowed
Legal Topics
Consent Judgment, Fraud, Company Representation, Authority of Company Officers, Setting Aside Judgments
Source Language
English
Land Law Company Law Contract Law Consent Judgment Fraud Company Representation Authority of Company Officers Setting Aside Judgments

Case Brief

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Parties

Mwaji Group Workshop Ltd

Plaintiff

CRDB Bank PLC

1st Defendant

MEM Auction Mart

2nd Defendant

Allan Mwile Mwaigaga

3rd Defendant

Procedural Posture

Land Case / Judgment

Legal Issues

  1. 1 Whether the plaintiff has sufficient ground for setting aside consent judgment
  2. 2 To what reliefs the parties are entitled

Ratio Decidendi

The consent judgment was set aside on the ground of fraud because the 3rd defendant, who signed the deed of settlement on behalf of the plaintiff, was not a director, secretary, or principal officer duly authorized to bind the company. There was no evidence of authority, and acts by unauthorized persons cannot bind the company. Fraud was thus established, rendering the consent judgment void ab initio.

Court Disposition

Suit allowed

Orders

  • Consent judgment in Application No. 207 of 2018 is set aside on ground of fraud.
  • The plaintiff will have her costs of this suit to be paid by the 3rd defendant.