Court orders firm to pay TIB Sh10 billion
What you need to know:
- Court records show that the company, based in Dar es Salaam, had only repaid Sh600 million from the original debt, leaving a substantial outstanding balance.
Arusha. The High Court, Dar es Salaam sub-registry, has ordered Euro Vistaa Tanzania Limited to pay TIB Development Bank more than Sh9.8 billion after defaulting on a loan.
The judgment, delivered on Monday, April 14, 2025, by Judge Awamu Mbagwa, also compels the company to pay interest on the amount at a reduced rate of seven percent from the date of judgment until full settlement.
This follows the court’s decision in Civil Case No. 4825 of 2024, filed by TIB Development Bank in collaboration with the Attorney General (AG).
The case was filed against Euro Vistaa Tanzania Limited and two individuals—Gidarilal Lath and Yuvraj Pramond Lath—who stood as guarantors for the loan.
Despite being duly served, the defendants failed to enter an appearance or file a defence, prompting the court to proceed ex parte (in their absence).
Court records show that the company, based in Dar es Salaam, had only repaid Sh600 million from the original debt, leaving a substantial outstanding balance.
TIB sought court confirmation that the defendants had breached the loan agreement.
The bank also requested 27 percent interest on the outstanding amount from the date of default to the date of judgment, in addition to post-judgment interest at a court-approved rate.
According to the judgment, the first summons was issued on 21 August 2024, but went unanswered.
A second notice, published in Mwananchi Newspaper on 27 August 2024, also failed to elicit a response.
Consequently, on 25 September 2024, the court granted leave for the matter to proceed without the defendants under Order VIII, Rule 14 of the Civil Procedure Code. State Attorney Tausi Sued represented the plaintiffs.
During the proceedings, the court heard testimony from one witness—Mr Emanuel Bushiri—and reviewed 15 exhibits, including the original loan agreement dated 27 January 2008.
Evidence presented indicated that Euro Vistaa borrowed $300,000 to finance agricultural inputs such as seeds and fertilisers, along with water pumps, a generator, and other operational needs.
Upon default, a 60-day demand notice was issued, and two properties used as collateral were sold.
However, as of 24 February 2024, the remaining loan balance stood at Sh9.8 billion.
After examining the documentary and oral evidence, the court was satisfied that the plaintiffs had established their case to the required legal standard and accordingly ruled in favour of TIB.
