The Respondent entered into an oral loan contract with the
Appellant, in which the Appellant lent the Respondent the sum of Tshs.
45,000,000 to be repaid without interest. After due date, the Respondent issued
a cheque which was dishonoured. The Appellant sent a demand notice to the
Respondent requiring the latter to settle his liability. The Respondent never
responded to the demand notice. The Appellant sued for the loan amount in the
High Court. In his ex parte judgment the trial judge expressed doubts on
the existence of the oral loan because a witness who was present when the loan
money was given was not called to testify. The above reasoning led the trial
High Court to answer all issued framed in the negative and dismiss the suit
with costs. The Appellant was aggrieved by the dismissal of the suit and filed
an appeal to this Court.