Arusha: Court orders hotel owner to pay $1.7m

Arusha. 

The owner of Snow Crest Hotel in Arusha has been ordered by the High Court to pay $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 ordered Wilfred Tarimo to pay Grand Alliance Limited the said amount for alleged infringement in the 2011 sale of the property.

High Court Judge Robert Makaramba in his judgment said the defendant breached the share acquisition agreement of September 5, 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 an acquisition agreement 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 which was opened in December 2009 outside Arusha along Moshi road.

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

Source: The Citizen Tanzania: