Facts
The respondent had in a written agreement pledged his shamba to secure a loan of shs.20,000/= from the appellant. The agreement was duly witnessed. On failure to repay the loan the appellant sued seeking to realize the shamba. The Primary Court which heard the case decided in favour of the appellant. On appeal by the respondent the District Court found that the Primary Court had no jurisdiction to hear the case as provided by the Magistrate's Courts Act, 1984 because the loan of shs. 20,000/= exceeded its pecuniary jurisdiction. The second appellate court considered what law was applicable and whether the Primary Court had jurisdiction to entertain the case.
Held: The transaction between the parties was governed by customary law therefore the Primary Court had jurisdiction to hear the case based on customary law and not on the general
principles of contract law.
Case Information
Appeal allowed
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