NBC LTD VS QUALITY CORP LTD COMM CASE NO
Summary judgment is entered for the Plaintiff as the Defendants failed to obtain leave to defend, making them jointly and severally liable for the outstanding loan and associated interests.
Source-derived case information.
- Citation
- NBC LTD VS QUALITY CORP LTD COMM CASE NO
- Parties
- Plaintiff: National Bank of Commerce Limited; 1st Defendant: Quality Corporation Limited; 2nd Defendant: Quality Group Limited; 3rd Defendant: Tan Perch Limited; 4th Defendant: Yusuf Manji; 5th Defendant: Kaniz Manji
- Court
- TANZLII
- Jurisdiction
- Tanzania
- Judgment Date
- 1 January 2018
- Procedural Posture
- Commercial Case / Summary Judgment
- Outcome
- Summary judgment for Plaintiff
- Legal Topics
- Loan Recovery, Summary Procedure, Guarantee Liability
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
National Bank of Commerce Limited
Plaintiff
Quality Corporation Limited
1st Defendant
Quality Group Limited
2nd Defendant
Tan Perch Limited
3rd Defendant
Yusuf Manji
4th Defendant
Kaniz Manji
5th Defendant
Procedural Posture
Commercial Case / Summary Judgment
Legal Issues
- 1 Whether the Defendants are liable to pay the outstanding loan amount under the credit facility and guarantees.
- 2 Whether summary judgment should be entered due to lack of leave to defend.
Ratio Decidendi
Summary judgment is entered for the Plaintiff as the Defendants failed to obtain leave to defend, making them jointly and severally liable for the outstanding loan and associated interests.
Court Disposition
Summary judgment for Plaintiff
Orders
- Defendants to jointly and severally pay Tshs 5,359,418,687.31 to Plaintiff.
- Defendants to pay contractual penal interest of 27% per annum from 1st March 2018 to date of judgment.
Full Case Text
Judgment text and source record
1 paragraphs
IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION) AT DAR ES SALAAM COMMERCIAL CASE NO. 55 OF 2018 NATIONAL BANK OF COMMERCE LIMITED................................... PLAINTIFF VERSUS QUALITY CORPORATION LIMITED......................................... 1 ST DEFENDANT QUALITY GROUP LIMITED.......................................................2nd DEFENDANT TAN PERCH LIMITED.................................................................. Jrd DE FEN DANT YUSUF MANJl............................................................................ 4th DEFENDANT KANIZ MANJI............................................................................ 5th DEFENDANT SUMMARY JUDGMENT SEHEL, J. The Plaintiff herein has filed a suit under summary procedure against the Defendants jointly and severally for payment of monies outstanding on account of the credit facilities extended to the 1st Defendant and guaranteed by the 2nd , 3rd, 4th and 5th Defendants. ~ i The Defendants upon being served with the summons, they duly lodged their application for leave to appear and defend the suit. However, their applications were encountered with objections which the Defendants had to concede as such their applications were strike out for being defective. Following the striking out of the applications there is no any other application for leave to appear and defend. Therefore in terms of Order XXXV Rule 2 (2) (a) of the Civil Procedure Act Cap. 33 read together with Rule 68 (c) of the High Court (Commercial Division) Procedure Rules GN 250 of 2012 summary judgment is hereby entered in favour of the Plaintiff and it is hereby decreed as follows:- 1. The Defendants shall jointly and severally pay the Plaintiff an outstanding amount of Tanzanian Shillings Five Billion Three Hundred Fifty Nine Million, Four Hundred Eighteen Thousand Six Hundred Eighty Seven Thirty One Cents (Tshs, 5,359,418,687.31) being payment of multi optional loan facilities stood as at t 28th February, 2018. 2. The Defendants shall jointly and severally pay the Plaintiff contractual penal interest of 27% per annum on (1) above to be computed from 1st March, 2018 till the date of judgments 2 3. The Defendants shall jointly and severally pay the Plaintiff contractual interest of 18% per annum on (1) above to be computed from 1st March, 2018 to the date of Judgment; 4. The Defendants shall jointly and severally pay the Plaintiff interest of 7% per annum on the decretal sum from the date of judgment till the date of fully payment, and 5. The Defendants shall jointly and severally pay the Plaintiff costs of the suit which shall be taxed. It is so ordered. Dated at Dar es Salaam 26th day of November, 2018. 3