20201120 TZHC Dar es Salaam

20201120 TZHC Dar es Salaam

The 1st Defendant possessed valid licences from the Bank of Tanzania and Ministry of Industries and Trade at the relevant time; the contract was not void ab initio. Plaintiff and 2nd Defendant breached their obligations under the mortgage and loan agreements and are liable to repay the outstanding loan amount and interest. Unjust enrichment principles require repayment of the loan received.

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 / Final Judgment
Outcome
main suit dismissed, counter claim granted
Legal Topics
Enforceability of Contracts, Business Licensing, Unjust Enrichment, Mortgage, Loan Default, Auction Procedures
Source Language
English
Contract Law Banking Law Enforceability of Contracts Business Licensing Unjust Enrichment Mortgage Loan Default Auction Procedures

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Parties

Richard Kalumuna Msemakweli

Plaintiff

African Banking Corporation Tanzania Ltd

1st Defendant

Christian Stanley Mshemakweli

2nd Defendant

Procedural Posture

Civil / Final 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 possessed valid licences from the Bank of Tanzania and Ministry of Industries and Trade at the relevant time; the contract was not void ab initio. Plaintiff and 2nd Defendant breached their obligations under the mortgage and loan agreements and are liable to repay the outstanding loan amount and interest. Unjust enrichment principles require repayment of the loan received.

Court Disposition

main suit dismissed, counter claim granted

Orders

  • Plaintiff's main suit dismissed with costs for lack of merits
  • Counter claim granted with costs