11 January 2013

Tanzania: Court Orders Auction of CTI Boss' House

THE High Court's Commercial Division has ordered the sale of house owned by Confederation of Tanzania Industries (CTI) Chairman, Mr Felix Mosha and Mrs Anna Mosha to satisfy a decree for 371m/-.

The decree was issued against them and West Kilimanjaro Flower Park Limited, for failure of the company they had guaranteed to repay a loan to Stanbic Bank Tanzania Limited. According to the proclamation of sale dated January 8, 2013, the house situated on Plot No. 91 Regent Estate Area, Kinondoni Municipality in Dar es Salaam, would be sold on January 27, by public auction.

"Notice is hereby given that an order has been passed by this court for the sale of the property mentioned in satisfaction of the claim of the decree holder (bank), amounting with costs and interest up to the date of sale to the sum of 371,156,180/-," reads part of the order.

The conditions of the sale indicate, among others, that no bid by or on behalf of creditor would be accepted nor would any sale to him be valid without the express permission of the court previously given. In 2004, the bank issued a loan of 602,500 US dollars to West Kilimanjaro Flower Park Limited, while Mr and Mrs Mosha executed personal guarantee to secure the repayment of the loan by the company.

It was alleged that the company failed to repay the loan and as of May 18, 2007, the outstanding debt stood at 51,278.43 US dollars and 65,926,667/40. The bank had no other option than to file a suit, through Kesaria and Company Advocates, against the trio on May 21, 2007.

Particulars of the suit indicate that the company was liable to the bank as principal borrower, while Mr and Mrs Mosha were responsible as guarantors for the company for repayment of the loan. On January 24, 2008, the High Court issued judgment in favour of the bank, but the defendants appealed the decision to the Court of Appeal.

But in December 2011, the appeal was 'struck out.' The trio went back to the High Court, this time around, seeking for orders for extension of time to file afresh notice of appeal to oppose the judgment award.

However, on November 21, last year, High Court Judge Agnes Bukuku dismissed the request. It was at that point when counsel for the bank, Dilip Kesaria, filed an application for execution of the decree.

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