nichoderms bethlehem mwaduma vs kcb bank tanzania limited 3 others 2022 tzhclandd 394 28 february 2022

nichoderms bethlehem mwaduma vs kcb bank tanzania limited 3 others 2022 tzhclandd 394 28 february 2022

The mortgage deed and facility letter were not signed by the plaintiff; the Bank failed to conduct proper due diligence and was negligent. The loan transaction was unlawful, null and void. Plaintiff is the lawful owner of the suit property and did not guarantee the loan. The Bank cannot auction or evict the...

Source-derived case information.

Citation
nichoderms bethlehem mwaduma vs kcb bank tanzania limited 3 others 2022 tzhclandd 394 28 february 2022
Parties
Plaintiff: Nichoderms Bethelehem Mwaduma; Defendant: KCB Bank Tanzania Limited; Defendant: Maimuna Mpanda; Defendant: Peter Andrew Athumani; Defendant: Nsombo & Company Limited; Defendant: Rose Wilbert Kombe
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
28 February 2022
Procedural Posture
Land Case / Judgment
Outcome
Plaintiff's suit allowed; counterclaim dismissed.
Legal Topics
Mortgage Validity, Fraudulent Loan Procurement, Ownership Dispute, Bank Negligence, Counterclaim Dismissal
Source Language
english
Land Law Banking Law Contract Law Mortgage Validity Fraudulent Loan Procurement Ownership Dispute Bank Negligence Counterclaim Dismissal

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Parties

Nichoderms Bethelehem Mwaduma

Plaintiff

KCB Bank Tanzania Limited

Defendant

Maimuna Mpanda

Defendant

Peter Andrew Athumani

Defendant

Nsombo & Company Limited

Defendant

Rose Wilbert Kombe

Defendant

Procedural Posture

Land Case / Judgment

Legal Issues

  1. 1 Whether the mortgage deed between the 1st and 2nd defendants is legally valid
  2. 2 Whether there was any breach of the Facility Letter by the defendants
  3. 3 Who is the lawful owner of the suit premises

Ratio Decidendi

The mortgage deed and facility letter were not signed by the plaintiff; the Bank failed to conduct proper due diligence and was negligent. The loan transaction was unlawful, null and void. Plaintiff is the lawful owner of the suit property and did not guarantee the loan. The Bank cannot auction or evict the plaintiff, and the counterclaim is dismissed.

Court Disposition

Plaintiff's suit allowed; counterclaim dismissed.

Orders

  • Declaration that Plot No. 38 Block B Low Density Kibaha Urban Area belongs to the plaintiff.
  • Mortgage of the suit premises to the defendant was fraudulently procured and is null and void.