20201120 TZHC Dar es Salaam

20201120 TZHC Dar es Salaam

The 1st Defendant held valid business and banking licences at the material time, and any lapse in annual renewal did not void the contract. The plaintiff and 2nd defendant, having received and benefited from the loan, are liable to repay it. Unjust enrichment principles prohibit retaining the loan without repayment. The main suit is dismissed, and the counterclaim for the outstanding loan amount is granted.

Citation
20201120 TZHC Dar es Salaam
Parties
Plaintiff: Richard Kalumuna Msemakweli; 1st Defendant: African Banking Corporation Tanzania Ltd; 2nd Defendant: Christian Stanley Mshemakweli
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
20 November 2020
Procedural Posture
Civil / Judgment
Outcome
main suit dismissed; counterclaim granted
Legal Topics
Enforceability of Contracts, Business Licensing, Unjust Enrichment, Mortgage, Loan Default, Auction Validity
Source Language
English
Contract Law Banking Law Enforceability of Contracts Business Licensing Unjust Enrichment Mortgage Loan Default Auction Validity

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Parties

Richard Kalumuna Msemakweli

Plaintiff

African Banking Corporation Tanzania Ltd

1st Defendant

Christian Stanley Mshemakweli

2nd Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the loan agreement entered between the 1st and 2nd Defendants was void
  2. 2 Whether the 2nd Defendant breached the loan agreement
  3. 3 Whether the Plaintiff in the counter claim is entitled to the amount of TZs 48,828,094.14 as a result of breach of facility agreement as at 21st May, 2017

Ratio Decidendi

The 1st Defendant held valid business and banking licences at the material time, and any lapse in annual renewal did not void the contract. The plaintiff and 2nd defendant, having received and benefited from the loan, are liable to repay it. Unjust enrichment principles prohibit retaining the loan without repayment. The main suit is dismissed, and the counterclaim for the outstanding loan amount is granted.

Court Disposition

main suit dismissed; counterclaim granted

Orders

  • The main suit is dismissed with costs for lack of merits.
  • The counterclaim is granted with costs on merits.