By Chisomo Phiri
High Court Judge Jabbar Alide has on Friday dismissed with costs an application by lawyer Tamanda Chokotho stopping FDH Bank plc from selling property which acted as a mortgage facility at K180 million, below the reserve price of K215 million.
The court learnt that Chokotho {the claimant} obtained a mortgage facility in the sum of K144 million from the defendant for purposes of purchasing property on Title Number LK3319.
But the claimant defaulted in the repayment of the loan; forcing the defendant to issue a notice of the sale of the property to recover the loan.
Again, the court heard that attempts to sell the property through public auction failed to attract buyers beyond the reserve price.
This prompted the defendant to get an approval for a waiver from the Ministry of Lands to sell the property at K180 million. But this didn’t amuse Chokotho who later obtained an injunction stopping the sale.
The claimant further argued that Section 73 of the Registered Land Act provides that variation of any powers of sale must be made by court.
He therefore said the variation of the reserve price by the Registrar of Lands was made ultra vires and not in good faith.
But in his ruling, Judge Alide found that the claimant’s action has no legal merit and failed to raise any triable issues.
“Further, it has brought remedies that are strange and not available under the applicable law.
“All I can see in this matter is the Claimant’s attempt to coin some confusion with a view of creating an impression that there is some controversy worth the court’s intervention,” reads Alide’s judgment.
It adds the present cause of action hinges on flimsy and untenable foundation bearing in mind the factual context and applicable in respect to the issues raised.
Further reads the judgment: “It is my view that the Claimant’s action doesn’t raise any arguable case. For the above reasons, the Claimant’s action herein fails entirely; and is dismissed with costs.”
