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Tanzania:Court dismisses contractor’s objections in 900m/- suit
Published on 1-08-2016 - at 01:18' by Daily News

HIGH Court has dismissed grounds of objections by the Contractors’ Registration Board (CRB) Chairperson, Consolata Ngimbwa and four other defendants to challenge the suit lodged by Commercial Bank of Africa (Tanzania) Limited for repayment of 885m/- loan facility.

Judge Eliezer Feleshi ruled against the defendants, including VC Tanzania Limited, Christom Ngimbwa Sebastian, Sherekwa Ngimbwa and Sherekwa Katisha, holding that the grounds presented were misconceived, with some being not pure points of law.

The defendants have denied the bank’s claims, arguing that it has no cause of action against Christom Ngimbwa Sebastian, Sherekwa Ngimbwa and Sherekwa Katisha while the suit was bad in law. The defendants further claimed that the case was bad in law for being preferred under the wrong name of the company and under nonexisting contracts in addition to suing Sherekwa Ngimbwa and Sherekwa Katisha, the one person, as two different people.

In his ruling, the trial judge upheld the impropriety of the suit before the court, saying the pleadings were clear and that the controversy was in respect of unpaid loan facilities and not in respect of land.

“The fact that landed properties were pledged as security cannot be said to have rendered the matter a land suit. Thus, that point has been misconceived and is hereby overruled,” the judge said. In respect of other remaining grounds, Judge Feleshi pointed out that thorough scrutiny reveals that the same covers mixed points of fact and law which could not safely be determined at this stage by preliminary objection, for they were not pure points of law.

“From all the above, all the sets of preliminary points of objection are not worth objection in the strict sense and in the precepts of the law, they are hereby overruled,” the judge declared.

On August 26, 2010, VC Tanzania Limited, which was trading as Electric International Company Limited, applied for and the bank duly approved facilities whereas Christom Ngimbwa Sebastian executed as security a property on Plot No. 228 at Jangwani Beach area in Kinondoni Municipality.

It is alleged that the bank advanced in terms of Bid Security 171m/- to enable the company undertake certain construction works with respect of New Matemwe and Mwande Secondary and extension of Chaani Secondary school. The security was valid for a six-month period.



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