Court orders Harmonize to pay CRDB Bank Sh113 million
Harmonize
What you need to know:
- Repayment of the outstanding amount of Sh103 million to CRDB Bank, interest will accrue on the outstanding amount at a rate of 18 percent per annum from the date of default until the judgment date.
Dar es Salaam. The High Court’s Commercial Division sitting in Dar es Salaam has awarded CRDB Bank Plc a Default Judgment against Rajabu Abdulkahali Ibrahim, aka Harmonize.
The judgment follows Harmonize’s failure to respond to the court's summons regarding a substantial debt dispute.
The case, which was first filed on December 6, 2023, sought to recover a total of Sh103.1 million from Harmonize stemming from an outstanding loan under two credit facilities provided by the bank.
The court found in favor of CRDB Bank, delivering the following verdicts:
Repayment of the outstanding amount of Sh103 million to CRDB Bank, interest will accrue on the outstanding amount at a rate of 18 percent per annum from the date of default until the judgment date.
Further the artiste is supposed to pay a 7 percent interest on the decretal sum which will apply from the judgment date until full payment is made.
Harmonize is also required to pay CRDB Bank Sh10 million in general damages and cover the legal costs of the suit
The dispute traces back to October 10, 2019, when CRDB Bank extended two credit facilities to Harmonize, amounting to a total of Sh300 million.
The loans, meant for music equipment, studio establishment, and promotion, were secured by a lien over a designated account, which Harmonize failed to maintain as agreed.
Despite several reminders and attempts to renegotiate the loan terms, Harmonize did not comply with the repayment schedule, leading to the lawsuit.
The court's default judgment was issued after the artiste repeatedly failed to appear in court or file a written defense. Despite multiple attempts to serve summonses, including publication in Mwananchi Newspapers, Harmonize did not respond.
The court's ruling underscores the importance of adhering to contractual obligations and demonstrates the legal system's commitment to upholding financial agreements.
CRDB Bank's legal representative, Mr. Fredrick Mpanju, had requested the default judgment after proving the defendant's breach of contract through detailed affidavits and supporting documents.
Judge C.K.K. Morris, who presided over the case, emphasized that the right of appeal has been explained to the parties involved.
