The High Court at Moshi held that the bank was justified in blocking loan funds meant for a third party, and dismissed the borrower’s suit with costs.
The court held that the plaintiff was justified in debiting and returning the USD 233,256 due to suspicious transaction concerns and instructions from authorities and the remitting bank. The 1st defendant breached the credit facility agreements by failing to repay the outstanding amount, and the 2nd and 3rd defendants remained liable as guarantors under the continuing security clauses. The plaintiff was entitled to recover the outstanding principal of USD 143,450.41 with interest and costs, and to enforce the mortgage if payment was not made within six months.
The High Court allowed a civil appeal, finding the trial court wrongly rejected relevant bank statements and misapprehended evidence about unpaid contractual sums.
The High Court held a collecting bank liable for wrongful conversion after processing a cheque intended for the customs authority and crediting another customer.
The High Court dismissed a criminal appeal by a regional accountant convicted of fraudulent accounting and stealing by public servant, upholding five-year imprisonment.
The High Court dismissed a criminal appeal against convictions for fraudulent false accounting and stealing by a public servant, affirming the sentence.