Hassan Said Kipussi versus KCB Bank Tanzania Limited

Hassan Said Kipussi versus KCB Bank Tanzania Limited; Misc Commercial Cause No. 286 of 2014: High Court of Tanzania (Commercial Division) at Dar es Salaam (Unreported).

• Civil Procedure

• Execution- Prohibitory order issued by the Court under Order 21 Rule 52 of the CPC – the judgment debtor sold the house – the house is also subject to mortgage – whether the purchaser is ‘a bona fide purchaser for value’ so that he can be protected.

• Land Law

• Bona fide purchaser- who is a bona fide purchaser for value?

Held:-

(i) When a person purchases a house that is not free form encumbrances and in which prohibitory order has been issued by the court, he cannot be said to be a bona fide purchaser for value.

(ii) When a person purchases property in public auction in satisfaction of a decree, he becomes a bona fide purchaser for value and, therefore, he acquires good title which cannot be disturbed. (Cited Ahmed Ally Salum v. Ritha Baswali and Another, Civil Application No 21 of 1999 (Unreported) and Peter Adam Mbeweto v. Abdallah Kulala and Mohamed Mweke (1981) TLR 333).