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Tanzania decisions
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Application for Mareva Injunction is not maintainable as it has been overtaken by events; applicants failed to cumulatively prove the three requisite conditions for grant of injunction, particularly irreparable loss and balance of convenience.
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The High Court found the mortgage over Plot No. 2146 lawful but held the auction was unlawful for lack of valid 14-day notice. The main suit was dismissed except for nullifying the auction.
The matter is settled by consent of the parties through a binding settlement agreement, which is recorded as a decree of the court, resolving all claims and counterclaims on agreed terms including payment obligations and consequences of default.
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The plaintiff's failure to appear on both scheduled hearing days without explanation constitutes lack of prosecution, justifying dismissal under Order IX Rule 5 Civil Procedure Code.
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The High Court dismissed Aureke Company Limited’s land suit, upheld the loan and auction process, and recognized the 3rd defendant as a bona fide purchaser.
The High Court granted an unopposed temporary injunction restraining sale of mortgaged properties pending determination of the main land suit.
The auction and transfer of the mortgaged property were illegal due to non-compliance with statutory and auctioneer notice requirements; the 3rd defendant was not a bona fide purchaser; the plaintiff breached the facility agreement and is liable for loan arrears.
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Auction was conducted contrary to statutory requirements for notice, but sale to bonafide purchaser cannot be reversed absent fraud; appellant's remedy is damages, not nullification of sale.
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The sale of the suit properties to the 3rd and 4th defendants was unlawful due to failure to comply with mandatory notice requirements under the Land Act and Auctioneers Act; the auction was invalid and the transfer of title arising from it is void.
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The court held that the auction was lawful as the mortgagee had made reasonable efforts to obtain the best price, including adjourning a prior auction and issuing required notices. There was no evidence of fraud or bad faith. The 3rd defendant was a bona fide purchaser for value and is protected by law. The plaintiffs' claims were dismissed.
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