Man defeats NBC bid to sell his house

A Dar es Salaam resident has saved his house from being auctioned by the National Bank of Commerce (NBC) over a 1989 loan he had failed to service.

Resident Magistrate Hezron Mwankenja of the Kisutu Resident Magistrate’s Court in the city ruled yesterday that NBC did not follow the loan agreement procedure when they sought to attach their debtor’s house.

“It is true Mr Ephraim Kavishe failed to repay the loan within the specified period but NBC did not follow the agreed procedure in their intention to sell the house,” Mr Mwankenja said.

Mr Kavishe had mortgaged the house to get a 400,000/- loan, which accumulated to 14m/- in interests and other charges.

The agreement was for him to repay the loan by November 30, 1990. However, due to unforeseen problems, he started repaying the loan in 1992.

He agreed to the amortised value of the loan and paid 1.2m/-with fresh terms that he repay the loan in full by 1995.

But in blocking its sale, Mr Kavishe pleaded that it was the only family house. He also said NBC breached terms of a new agreement by attaching the house in 1994, a year before their renegotiated repayment period.

Mr Mwankenja further ruled that by losing the right to sell the house, NBC had also lost everything in the case, meaning Mr Kavishe will now not be required to repay the balance.

The creditor’s biggest problem was not to observe procedure for all foreclosures, Mr Mwankenja noted.

SOURCE: DAILY NEWS