Automated Summary
Key Facts
Stanbic Bank Zambia Limited obtained a judgment against Esther Reuben Kamungu for a defaulted staff loan of K222,900,000 (old currency) secured by a First Legal Mortgage on Plot No. 684/E83 Chipata. The loan, with a 7% annual interest rate, was to be repaid over 312 months in equal installments. Kamungu defaulted, resulting in a judgment debt of K226,139.62 plus interest. The court ordered foreclosure, possession, and sale of the mortgaged property if the debt remains unpaid within 60 days of the 19 January 2017 judgment.
Issues
The court addressed whether a mortgagee (Stanbic Bank Zambia Limited) is entitled to pursue cumulative remedies under Order 30 Rule 14 of the High Court Rules, including payment of outstanding debt, possession of the mortgaged property (Plot No. 684/E83 Chipata), and foreclosure and sale, following the Respondent's failure to service a K226,139.62 debt. The Applicant cited authority from S. Brian Musonda v Hyper Food Products Limited and Megarry's Manual of the Law of Real Property, confirming mortgagees may employ multiple remedies to enforce payment.
Holdings
- The court entered judgment in favor of Stanbic Bank Zambia Limited against Esther Reuben Kamungu for the sum of K226,139.62 plus contractual interest of 7% per annum from 11th March 2016 to 19th January 2017, and thereafter at the average lending rate as determined by the Bank of Zambia until full payment.
- The court affirmed that the mortgagee's remedies (foreclosure, possession, and sale of the mortgaged property Lot No. 684/E83 Chipata) are cumulative, allowing the bank to pursue one or all remedies to enforce payment.
- Costs were awarded to the Applicant (Stanbic Bank Zambia Limited) to be taxed in default of agreement.
- Leave to appeal was granted to the Respondent.
Remedies
- Costs are awarded to the Applicant to be taxed in default of agreement.
- Judgment is entered in favour of the Applicant Bank for the sum of K226,139.62 together with contractual interest of 7% per annum from 11th March, 2016 to date of Judgment i.e. 19th January, 2017 and thereafter at the average lending rate as determined by the Bank of Zambia up to date of full payment.
- It is ordered that the Applicant Bank may foreclose, take possession of the mortgaged property (Lot No. 684/E83 Chipata) and exercise its power of sale in the event of default in paying the Judgment sum.
Monetary Damages
226139.62
Legal Principles
The court applied the principle that a mortgagee's remedies are cumulative, allowing the bank to pursue multiple remedies to enforce payment.
Precedent Name
S. Brian Musonda (Receiver of First Merchant Bank Zambia Limited (in Receivership) v Hyper Food Products Limited, Tony's Hyper Market Limited and Creation One Trading (Z) Limited
Cited Statute
High Court Rules
Judge Name
Mr. Justice W.S. Mweemba
Passage Text
- It is trite law that the mortgagee's remedies or reliefs indicated in the Originating Summons are cumulative and as such in the event of default by the Respondent in paying the Judgment sum herein, the Applicant Bank shall Foreclosure, have Possession of the Mortgaged Property and exercise its Power of Sale.
- I accept the Applicant Bank's submissions in this regard.
- It is ordered that the Judgment sum of K226,139.62 together with interest be paid within 60 days from date hereof.