Re: Manyara Estate Ltd. and Others v. The National Development Credit Agency [1970] H.C.D. Nos. 267 and 268.

Re: Manyara Estate Ltd. and Others v. The National Development Credit Agency [1970] H.C.D. Nos. 267 and 268.

Editor’s note:

            The issue in this case was whether the Agency was entitled to have its mortgage debt (for which it had recovered judgment) satisfied in full with priority over the other judgment creditors. It was held that the Agency had no priority since the right of occupancy which was a security for the mortgage had been revoked. This issue has now been satisfactorily resolved by s. 14B of the Land Ordinance, Cap. 113. the section was added by the Land Laws (Miscellaneous Amendments) Act No. 28 of 1970 in July 1970 s. 14B reads: S 14B – (1) Where any amount is paid to the President on behalf of a previous occupier in accordance with the provisions of paragraph (b) of section 14 and the President is satisfied that – (a) “Such previous occupier had created a mortgage on the right of occupancy of the land previously held by him; and (b) that the amount payable to the mortgagee in respect of such mortgage remains wholly or partly unpaid,” the President shall, out of the amount so received by him, make payment to the mortgagee of the amount remaining due to him under the mortgage, and where such payment is made to a mortgagee the remainder only, if any, shall be paid to the previous occupier: Provided that the President may refuse to make a payment under this subsection to a mortgagee is such mortgagee fails to lodge his claim for such payment in writing with the Minister  within three months of the date when the right of occupancy of the previous occupier was revoked. Where there are two or more mortgagees, the priority applicable for payment of them under subsection (1) shall be on the same basis as obtained with mortgages under the law for the time being regulating mortgages.