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Euro Bank Limited (In Liquidation) v Twictor Investments Limited & 2 others [2020] KECA 516 (KLR)

[2020] KECA 516 (KLR) Court of Appeal
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Court
Court of Appeal
Case number
516
Citation
[2020] KECA 516 (KLR)
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeCivil AppealPostureAppeal from the High Court judgmentCoramW. KARAN, HANNAH OKWENGU, F. SICHALE
Holding

The sale was by private treaty and not public auction, hence the irregularities should be equated to those at a public auction. The statutory notice was proper, and the Title Deed issued to the 1st respondent (Twictor Investments Limited) be cancelled. The property reverts to the 3rd respondent (Tesha (K) Limited).

Facts

Euro Bank Limited (the Bank) took a charge for Kshs. 1,000,000 from Mirera Drive, guaranteed by Twictor Investments Limited. The Bank sold the charge property to Chamgaa Company Limited, who then transferred it to Tesha (K) Limited. Twictor Investments Limited challenged the sale and sought cancellation and prohibitory orders.

Issues

  1. Validity of the Bank's statutory power of sale
  2. Title over the suit property
  3. Remedies for a non-valid statutory notice

Reasoning

The sale was by private treaty and not public auction, hence the irregularities should be equated to those at a public auction. The statutory notice was proper, and the Title Deed issued to the 1st respondent was cancelled.

Outcome

Appeal allowed, Title Deed cancelled, property reverts to 3rd respondent.

Orders

  • Title Deed issued to 1st respondent (Twictor Investments Limited) be cancelled.
  • Property reverts to 3rd respondent (Tesha (K) Limited).

Remedies

  • Damages for the 1st respondent (Twictor Investments Limited).

Authorities cited

Legislation (2)
  • Indian Transfer of Property Act (ITPA) 1882
  • Real Property Act (RLA)
Cases cited (3)
  • Nancy Kahoya Amadiva vs Expert Credit Limited
  • David Ngugi Mbuthia v Kenya Commercial Bank and Another
  • Hilton Walter Osinya and Saving and Loan (K) Ltd and another
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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