The Appellant obtained a loan facility from the Respondent
in November 2017. The purpose of the loan was to finance her businesses located
in Kyela District and in the country of Malawi. The securities alleged to be
charged for the loan are a motor vehicle and a house located at Itunge, Kyela.
It turned out that the businesses did not go as expected following the
calamities that befell the Appellant. She could not repay the loan and the
Respondent sought to execute the loan agreement. She thus instituted a suit in
the District court claiming, among other things, orders of the court to
restrain the Respondent from executing the loan agreement by selling the
securities. It turned out the Respondent defaulted in filing his written
statement of defence as ordered thus the matter was heard ex parte.
In the trial court the Appellant claimed that the business
in Malawi got robbed whereby all the merchandise was taken by burglars and at
the same time the business at Kyela caught fire and all the stock was burnt.
These two incidences crippled her financially to the extent of failing to repay
the loan. In short she pleaded frustration of the contract and that the
Respondent’s act of seeking to sell the collateral properties was illegal.
Despite this testimony the trial court entered the decision in her disfavour,
hence this appeal.