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Tanzania Judgment

TZHCCOMD

national bank of commerce limited vs jomo kenyatta traders limited others 2015 tzhccomd 2089 29 october 2015

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Research organized from the available case record

Source document

01

Holding and result

With the defendants' application to defend struck out, the plaintiff is entitled to summary judgment under Order XXXV rule 2 (2) (a) of the Civil Procedure Code as the allegations in the plaint are deemed admitted.

Court disposition

judgment for the plaintiff

Orders

  • Defendants to pay Tsh. 1,032,610,099.21 being the outstanding loan amount as at December 31, 2014
  • Interest at the contractual rate from December 31, 2014 to the date of judgment
  • Interest on the decretal amount at 7% from the date of judgment to full and final payment
  • Defendants to bear costs of the suit

02

Material facts

Parties

National Bank of Commerce Limited

Plaintiff Counsel: Linda Bosco

Jomo Kenyatta Traders Limited

Defendant

Moi Kashigo Kivaria

Defendant

Michael Kimwaga

Defendant

William Geoflrey Kimwaga

Defendant

Monica Kimwaga

Defendant

Mwanaidi Salum Bushir

Defendant

Amounts and remedies

  • Outstanding Loan Amount: TZS 1,032,610,099.21

03

Procedural history

  1. Posture

    Commercial Case / Summary Judgment After Application for Leave to Defend Was Struck Out

04

Questions and positions

Legal issues

Party arguments

Applicant
Plaintiff sought summary judgment for the outstanding loan amount, interest, and costs after defendants' application to defend was struck out.
Respondent
No valid argument presented as defendants' application to defend was struck out as incompetent.

05

Court’s reasoning

  1. 01

    Order XXXV rule 2 (2) (a) of the Civil Procedure Code, Cap. 33

    Order XXXV rule 2 (2) (a) of the Civil Procedure Code allows summary judgment where the defendant has no substantial defence.

  2. 02

    CRDB Bank Limited Vs John Kagimbo Lwambagaza [2002] TLR 117

    Purpose of summary procedure is to enable expeditious judgment where no substantial defence exists.

06

Ratio, limits and disposition

Ratio decidendi

With the defendants' application to defend struck out, the plaintiff is entitled to summary judgment under Order XXXV rule 2 (2) (a) of the Civil Procedure Code as the allegations in the plaint are deemed admitted.

Obiter and limits

  • Alternative prayers in the plaint may be pursued under relevant circumstances and legal avenues if defendants fail to pay.

Court disposition

judgment for the plaintiff

  • Defendants to pay Tsh. 1,032,610,099.21 being the outstanding loan amount as at December 31, 2014
  • Interest at the contractual rate from December 31, 2014 to the date of judgment
  • Interest on the decretal amount at 7% from the date of judgment to full and final payment
  • Defendants to bear costs of the suit

Source and reliance status

TZHCCOMD · 29 October 2015

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Judgment reading view

Judgment text

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Source document

TZHCCOMD

Judgment· 29 October 2015

national bank of commerce limited vs jomo kenyatta traders limited others 2015 tzhccomd 2089 29 october 2015

IN THE HIGH COURT OF TANZANIA (COMMERCIAL DIVISION)

AT PAR ES SALAAM COMMERCIAL CASE NO. 64 OF 2015 NATIONAL BANK OF COMMERCE LIM ITED ......................... PLAINTIFF

VERSUS JOMO KENYATTA TRADERS LIMITED^

MOI KASHIGO KIVARIA

MICHAEL KIMWAGA

WILLIAM GEOFLREY KIMWAGA DEFENDANTS

MONICA KIMWAGA MWANAIDI SALUM BUSHIR ; 28th & 29th October, 2015

SUMMARY JUDGMENT (Under Order XXXV rule 2 (2) (a) of the Civil Procedure Code, Cap. 33 of the Revised Edition, 2002) MWAMBEGELE. 3.: After the application for leave to defend this summary suit was struck out on 28.10.2015 for being incompetent, Mr. Linda Bosco, the learned counsel for the plaintiff who appeared for the plaintiff prayed that summary judgment be entered in favour of the plaint. The prayer was made under Order XXXV rule 2 (2) (a) of the Civil Procedure Code, Cap. 33 of the Revised Edition, 2002. l Ms. Bosco, learned counsel is right to present the prayer. Since the defendants' application to defend the summary suit as required by the law has been struck out, then the provisions of Order XXXV rule 2 (2) (a) of the CPC must be brought into play. As was articulated in CRDB Bank Lim ited Vs John Kagimbo Lwambagaza [2002] TLR 117, the purpose of "Order XXXV: Summary Procedure" is to enable a plaintiff to obtain Judgment expeditiously where the defendant has in effect no substantial defence to the suit. The allegations by the plaintiff Bank in the plaint are therefore adjudged to be admitted and the Bank is entitled to Judgment. In the premises, I do hereby enter judgment for the plaintiff Bank as prayed in the first limb of the prayers plaint with costs. That is to say; (a) Payment of the sum of Tanzania Shillings One Billion Thirty Two Million Six hundred Ten thousand

ninety and Cent Twenty one (Tsh. 1,032,610,099/21) being the total outstanding amount on account of the Multi Option Facility Commercial Terms and the Term Loan Commercial Terms granted to the 1st Defendant as at December 31, 2014; (b) Interest on the above at the contractual rate from December 31, 2014 to be the date of judgment; (c) Interest on the decretal amount at the rate of 7% from the date of judgment to the date of full and final payment; and (d) Costs of the suit to be borne by the Defendants. The alternative prayers in the plaint will have to be pursued under relevant circumstances and avenue according to the law upon failure by the defendants to pay the outstanding amount. Order accordingly. DATED at DAR ES SAU\AM this 29th day of October, 2015.

3. C. M. MWAMBEGELE

JUDGE

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

CRDB Bank Limited Vs John Kagimbo Lwambagaza [2002] TLR 117

Case cited

Order XXXV rule 2 (2) (a) of the Civil Procedure Code, Cap. 33

Legislation

Legislation referenced in the available case record.

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