Karuri Civil Engineering (K) Limited v Equity Bank Limited [2019] KECA 866 (KLR)
- Court
- Court of Appeal
- Case number
- 866
- Citation
- [2019] KECA 866 (KLR)
We find this appeal has no merit and dismiss it. The respondent is not liable to the appellant for loss of user of the detained equipment on account of delay in payment of the performance bond.
Facts
The appellant, Karuri Civil Engineering (K) Limited, filed a suit against the respondent Bank, Equity Bank Limited, for breach of a Performance Bond. The appellant claims it performed a substantial part of the sewerage works until 13 th July 2004 when the Office of the President terminated the contract and demanded payment of the Bond amount. The respondent Bank paid the Bond sum on 23 rd September 2008, but the appellant's machinery and equipment were detained for four years.
Issues
- Whether the respondent Bank committed breach of the Performance Bond
- Whether the respondent Bank is liable to the appellant for loss of user of the detained equipment
Reasoning
The retention or detention of the appellant's plant, machinery, equipment and motor vehicles was occasioned by failure of the appellant to execute and perform the sewerage rehabilitation works. The bond only guaranteed payment to the Department of Defence and was not an insurance cover for the appellant.
Outcome
Appeal dismissed
Orders
- Appeal dismissed
- Counterclaim affirmed
Authorities cited
Cases cited (1)
- Sinohydro Corporation Limited vs. GC Retail Limited & another [2016] eKLR
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