By Kusekwa Kusekwa
The CRDB Bank has won a case for recovery of a loan and other consequential reliefs from businesswoman, Lilian Joseph Badi, following breach of an agreement between the parties.
The High Court at Arusha granted the bank an ex-parte judgement after Ms Badi failed to appear during the hearing of the case to have her side of the story also heard.
“Since the plaintiff’s evidence is undisputed, the Court is satisfied that the Defendant breached the Loan Facility Agreement. The evidence is coherent, consistent and unchallenged. The Court is satisfied that the Plaintiff proved its claims on the balance of probabilities,” Judge Thadeo Mwenempazi declared in a judgement delivered recently.
The Judge also granted several orders, requiring the defendant to pay a total of Sh. 450m/- as principal loan balance and general damages. He ordered that she pays the loan balance of Sh.300m/- and another Sh.150m/- in general damages. She will also have to pay 17 per cent interest per annum on the outstanding amount from February 5, 2024 to the date of the judgement.
“The Defendant shall further pay penal interest at 30 per cent per annum from the date of default until the date of judgement. The Defendant shall pay interest at 12 per cent per annum on the decretal sum from the date of the judgement until satisfaction in full. Costs of the suit are awarded to the Plaintiff,” the Judge ruled.
Before reaching the decision, the Judge had to determine a number of issues, notably whether the defendant and the plaintiff had entered into a valid Loan Facility Agreement; whether the defendant breached that agreement; whether the plaintiff had proved their claims on the balance of probabilities and what remedies the parties were entitled to.
The court heard that the defendant applied for, and was granted a loan of Sh 300m/-. After approval, the parties executed a Loan Facility Agreement or Terms and conditions, which were duly signed by the defendant and verified.
However, the defendant defaulted on repayment of the installments. She then wrote to the plaintiff requesting a grace period, which she was granted but defaulted still, leaving the bank with no option except to seek legal redress.
