Chihana loses katapila case, court orders sale of 2 vehicles
The High Court in Lilongwe has ruled that a katapila (usury) man whom Alliance for Democracy (Aford) president took K5 million in back-street loan arrangement must get the Aford leader’s two vehicles and sale them.
In a ruling read by the registrar of Commercial Court Anne Zungulira on Thursday in Lilongwe, the court ordered that the two vehicles; a Land Rover Discovery registration number RU 779 and a BMW RU 741 be surrendered to the katapila man for sale because Chihana failed to pay back the agreed amount of money at an interest of 100 per cent which means he had to pay back the katapila man K10 million.
According to High Court Lilongwe registry documents, Chihana took K5 million from E.Kabuli in March, 2020 and agreed to pay back K10, 125, 000 in katapila loan arrangement at the rate of 102.5 per cent interest to be paid within 20 days.
He pledged his two vehicles; a BMW registration number RU 740 and Land Rover Discovery registration number RU 7799.
Chihana serviced the katapila loan and paid as follows; paid K2 million on April 16, 2020, K1 million on April 30, 2020, K1.6 million on April 15, 2020 amounting to K4.6 million.
“That following this the claimant agreed to discharge one of the vehicles I had put as security namely BMW RU 740 as the other vehicle that was left with him Land Rover Discovery RU 7799 was more valuable than the balance of the money ie MK5,528,000.
“That I was out of the country I could not manage to settle the balance within the agreed time,” says Chihana in a sworn affidavit.
Chihana says he surrendered the Land Rover Discovery so that Kabuli could sell it, saying the value of the vehicle was K20 million.
He said Kabuli obtained a court to sell the Land Rover Discovery to which Chihana did not contest, knowing that the katapila man would get more than the K5.5 million balance.
“That I was thus shocked when the sheriffs of Malawi seized my vehicle BMW registration number RU 740 that I had duly redeemed when I paid the sum of MK4,600,000.
“That I was surprised because as far I know the claimant’s claim as pleaded in this action was duly satisfied with him getting the order to sell the Land Rover Discovery RU 7799 that he expressly and specifically prayed to this court and is this action,” he says.
He then asked the court to pend the seizure and the sale of the vehicle.
In an interview this week, Chihana said party parliamentary candidates in the May 21, 2019 poll took the katapila to pay for their nomination fees to MEC.
However, the dates do not correspond and the candidates have vehemently refuted this claim.
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Katapila is illegal in Malawi. The only entities that are given a licence to operate katapila are commercial banks. 🙉
mbuzi yamunthu Chihana uyu asa
amaendera SISITIMU UYU. SELF ABDUCTION YA PA KWACHA IJA SEMUSEMU.
KATAPILA???? KKKKKKKK.
FULISHI BASTARD
Fiscal P:olice must investigate this business. How can one demand 102% profit?
In less than 30days mmmm indeed fiscal police they need to investgate
I am not a lawyer but I know for sure that Katapila is illegal in Malawi, so the court erred in its judgment. Both the Katapila man and Chihana should have been expediently committed to a long term in jail for doing illegal business. Period.
Achitsiru awa, Chakufwa anali dolo osati anzake a Atupele wa, oyendera maina a DAD, shupiti
I am missing something here. How can one benefit from an illegal business transaction? Katapila is illegal. Was Chihana represented by competent lawyers? Is he going to exercise his right to appeal?
Komadi nde you are missing something. Unazitenga kuti zoti katapira is illegal?
Katapila is just aa word that has been used by the writer. The point is Chihana borrowed money to be paid back at an interest. Its not a crime to lend someone money. There is nothing insinuating that the borrower was operating a money lending business without a licence. This is a case of a single transaction between two people. If the katapila man operates this kind of business then that is a different case of which the court can act if it is moved. The court can not assume that the katapila man does that regulary after all it… Read more »
I too wonder
Surprised as well, the rule of law is very straight forward, you do not seek equity with dirty hands.
There was a contractual agreement between the two
This decision can be appealed against. It’s wrong decision.
Just two days ago Chihana was boasting that he is “Super rich” and flies the business class, what has happened to the richest guy. Ukalemera usamenere pagulu akulu amatero. By the way, where are the Tonse Alliance guys to bail him out