st bernads hospital co ltd vs crdb bank ltd 2010 tzhc 419 20 december 2010

st bernads hospital co ltd vs crdb bank ltd 2010 tzhc 419 20 december 2010

The Board Resolution to change signatories was valid as it was made by the Directors who were also shareholders; the Defendant's refusal to act on the resolution constituted a breach of the banker-customer relationship. However, the Plaintiff failed to prove any actual damages or hardship resulting from the...

Source-derived case information.

Citation
st bernads hospital co ltd vs crdb bank ltd 2010 tzhc 419 20 december 2010
Parties
Plaintiff: St. Bernard's Hospital Co. Ltd; Defendant: CRDB Bank Ltd
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
20 December 2010
Procedural Posture
Commercial Case / Judgment
Outcome
Partly in favour of Plaintiff
Legal Topics
Breach of Contract, Banker Customer Relationship, Board Resolutions, Change of Signatories, Withholding of Security, Damages
Source Language
english
Contract Law Banking Law Company Law Breach of Contract Banker Customer Relationship Board Resolutions Change of Signatories Withholding of Security +1 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

St. Bernard's Hospital Co. Ltd

Plaintiff

CRDB Bank Ltd

Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether the resolution to change signatories to the Plaintiff's bank accounts constituted a valid and/or proper mandate to the Defendant
  2. 2 Whether the refusal by the Defendant to act on the disputed Board Resolution constituted a breach of banker-customer relationship
  3. 3 Whether the Defendant has withheld any security after the liquidation of a loan by the Plaintiff and if so, whether the Plaintiff's business has been thereby subjected to any hardships

Ratio Decidendi

The Board Resolution to change signatories was valid as it was made by the Directors who were also shareholders; the Defendant's refusal to act on the resolution constituted a breach of the banker-customer relationship. However, the Plaintiff failed to prove any actual damages or hardship resulting from the Defendant's actions, and no evidence was provided to support the claim for general damages.

Court Disposition

Partly in favour of Plaintiff

Orders

  • Defendant to hand over to Plaintiff Certificate of Title No.43577 of Plot No.34, Block 68, Udoe Street Kariakoo
  • Defendant to maintain the contract of banking with Plaintiff under normal circumstances