Bank wins 187m/- rental arrears case

FAUSTINE KAPAMA

THE High Court’s Commercial Division has ordered three individuals, including Ntui Commercial Company and Company officials, Mr Edward Pius Ndoghwe and Mr Jumanne Ali Hante to pay over 187m/- to Stanbic Bank Tanzania Limited, as rental arrears of a bulldozer.

Judge Haruna Songoro ruled against the three individuals, who were defendants in the matter, after granting the commercial dispute filed by the Bank, the plaintiff, through legal services of Advocate Paschal Kamala from Kesaria and Company Advocates.

“All the three defendants jointly and together are ordered to pay the plaintiff’s claim for rental arrears and costs incurred in pursuing the suit.

Right of appeal is fully explained to the parties,” the judge declared. He said that the evidence produced by plaintiff’s witness was supported by the lease agreement which established that the new bulldozer was rented to Ntui Commercial Company and in return the company undertook to pay to the plaintiff’s bank a monthly rent of 8,239,893.49 for a period of 36 months.

“The court perused through details of the bank account of Ntui Commercial Company Limited, in which rental payments were being made and found out that some monies were paid by the first defendant but from August 18, 2009 there was an accumulation of outstanding rent of 187,249,290/19, which was still unpaid,” he said.

According to the judge, the other reason which supported the court’s finding that the debt has remained unpaid was that the Company and even its guarantors did not produce in court as exhibits such as bank slips that show that the entire debt has been paid.

“So, in the absence of bank pay slips proving repayment of the loan in full, the only inference left with the court is that part of the loan has not been paid,” Judge Songolo concluded.

In the suit, the defendants had lodged a counter-claim for 150m/- payments, general damages and other costs.

In the judgment, however, the trial judge has this to say, “Without repeating too much on the defendants claims on counter claim and claim for special damages, I have decided earlier that were not strictly proved as required by law and they all fail.”

The bank had alleged that on June 7, 2007, it availed credit facilities to Ntui Commercial Company, the first defendant, for the purpose of funding the acquisition of tractors (1X Brand New Shantui Dozer, Model SD23). Subsequently on August 30, 2007, the Bank and Ntui Commercial Company executed lease agreements in connection with the facility.

It was alleged that the Company’s obligations to the Bank were guaranteed by Mr Ndoghwe and Mr Hante, the second and third defendants, respectively.

The Plaintiff Bank stated that the first defendant was in breach of its repayment obligation and has defaulted in paying to the Bank the monthly amounts due under the lease agreements.

Consequently, the plaint of the suit alleges, an event of default occurred and as a result of the first defendant’s breach the Bank was entitled to demand and recover the full balance outstanding and due from the first defendant to the plaintiff under the aforesaid facilities