Kibic Star Electro Limited & 2 others v Southern Credit Banking Group (Civil Appeal 305 of 2015) [2022] KECA 71 (KLR) (4 February 2022) (Judgment)
- Court
- Court of Appeal
- Case number
- 71
- Citation
- [2022] KECA 71 (KLR)
- Decided
- 4 February 2022
The Court of Appeal held that the 1st appellant did not default in repayment and that the 2nd and 3rd appellants did not execute a guarantee.
Facts
The respondent filed a suit against the appellants seeking to recover a sum of Kshs.23,141,488.70 plus costs and interest. The facilities were granted by the respondent to the 1st appellant, secured by a legal charge over L.R 7741/73 Nairobi, owned by the 2nd appellant. The 1st appellant defaulted in repayment, and the charged property was sold for Kshs.30,000,000.
Issues
- Whether the 1st appellant defaulted in repayment of the facilities
- Whether the 2nd and 3rd appellants executed a guarantee in favor of the respondent
Reasoning
The Court of Appeal found that the 1st appellant had an agreement with the respondent to sell the charged property by private treaty and that the respondent would receive the purchase price in full and final settlement of the loan and bill discounting facilities.
Outcome
Affirmed the High Court's judgment
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