trust bank tanzania ltd vs le marsh enterprises ltd 2 others 2001 tzhccomd 6 9 february 2001

trust bank tanzania ltd vs le marsh enterprises ltd 2 others 2001 tzhccomd 6 9 february 2001

The 1st defendant breached the loan agreement by failing to repay the principal and interest as stipulated. The 2nd and 3rd defendants, as guarantors, are liable for the outstanding debt since their liability is co-extensive with the principal debtor. The Bank's statement of account, unchallenged by the defendants,...

Source-derived case information.

Citation
trust bank tanzania ltd vs le marsh enterprises ltd 2 others 2001 tzhccomd 6 9 february 2001
Parties
Plaintiff: Trust Bank Tanzania Ltd; 1st Defendant: Le-Marsh Enterprises Ltd; 2nd Defendant: Joseph Mbui Magari; 3rd Defendant: Lawrence Macharia
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
9 February 2001
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff
Legal Topics
Loan Agreements, Guarantee and Indemnity, Interest Calculation, Specific Performance, Banker's Books Evidence
Source Language
english
Banking Law Contract Law Loan Agreements Guarantee and Indemnity Interest Calculation Specific Performance Banker's Books Evidence

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Parties

Trust Bank Tanzania Ltd

Plaintiff

Le-Marsh Enterprises Ltd

1st Defendant

Joseph Mbui Magari

2nd Defendant

Lawrence Macharia

3rd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether there was an agreement to extend loan and overdraft facilities to the 1st defendant and the terms thereof
  2. 2 Whether Guarantee and Indemnity Agreements were executed by the 2nd and 3rd defendants and their terms
  3. 3 Whether there was a breach of the agreements by the defendants

Ratio Decidendi

The 1st defendant breached the loan agreement by failing to repay the principal and interest as stipulated. The 2nd and 3rd defendants, as guarantors, are liable for the outstanding debt since their liability is co-extensive with the principal debtor. The Bank's statement of account, unchallenged by the defendants, is accepted as conclusive evidence of the debt. The defendants' argument that repayment was contingent on the overdraft disbursement is rejected, as the loan and overdraft were subject to different conditions. The counterclaim for specific performance is deemed abandoned as it was not included in the amended defence.

Court Disposition

Judgment for the plaintiff

Orders

  • Defendants to pay the Bank TZS 45,230,040 as principal (judgment on admission)
  • Defendants to pay interest at 28% per annum (normal) and 7% per annum (penalty) on the principal up to 20.6.2000