TANZANIA: COURT ORDERS SNOW CREST HOTEL OWNER TO PAY U.S. $1.7 MILLION TO DAR BUSINESSMAN

The owner of Snow Crest Hotel in Arusha has been ordered by the High Court to refund $.1.7 million (about Sh. 3 billion) to a person who reportedly purchased the hotel some years ago but later backed out.

The Commercial Division of the Court in its ruling on Friday last week ordered the Wilfred Tarimo to pay Grand Alliance Limited the said amount for alleged infringement of the 2011 sale of the property.

High Court Judge Robert V. Makaramba in his judgement said the defendant breached the share acquisition agreement of September 5th, 2011 during which the hotel was to change hands.

James Ndika, a Dar es Salaam-based businessman and managing director of Grand Alliance Ltd.,had on the said date entered into the acquisition of the facility by buying 61 per cent shares.

The plaintiff later backed out of the deal after discovering some inconsistencies on the title deeds of the $ 8 million facility opened in December 2009 east of Arusha along Moshi road.

Mr. Ndika, also operates some investments in Arusha. In a Commercial Case No. 9 of 2012 he filed on January 5th, 2012, Ndika prayed for refund of his $ 1.7m and interest because of failure by the defendant to handover to him the hotel.

The defendants in the case included Mr. Tarimo and his family members Derick Tarimo, Doreen Tarimo, Mrs Irene Tarimo (his wife) and Snow Crest and Wildlife Safaris Limited.

'A declaration that the first to fourth defendants' unilateral usurpation and subsequent refusal, neglect or failure to handover the management of Snow Crest Hotel to the plaintiff is breach of the share acquisition agreement", Judge Makaramba said.

The Court ordered Mr. Tarimo to repay Mr. Ndika the sum he paid for the share acquisition agreement ($ 1.7m) with interest of four per cent since the case was filed and seven per cent since the judgement was made until the day of settlement.

In the case, Mr. Tarimo, who still operates the hotel, was represented by an advocate Aggrey Kamazima while Meleckzedeck Lutema stood for the plaintiff.

The settlement should be made within 30 days after the judgement.

Speaking in Arusha after the judgement last weekend, Mr. Ndika said he was happy with the ruling and that he was forced to back down the deal after realizing inconsistencies.

"Once I am refunded with the interest, I will close this chapter once and for all", he explained, adding that the most glaring infringement was the title deeds on the hotel.

Snow Crest Hotel was in the news immediately after its inauguration in December 2009 when a concrete barrier on its front side was demolished on orders from Tanroads for being within the road reserve.

The Arusha Times