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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