Commcarrier Satellite Service Limited & another v Global Freight Logistics Ltd (Civil Appeal 138 of 2019) [2026] KECA 290 (KLR) (20 February 2026) (Judgment)
- Court
- Court of Appeal
- Case number
- 290
- Citation
- [2026] KECA 290 (KLR)
- Decided
- 20 February 2026
The appeal is dismissed with costs
Facts
Global Freight Logistics Ltd presented CommCarrier Satellite Service Ltd with an invoice for Kshs.4,812,346.80, which CommCarrier issued four promissory notes for. Two of the notes were not paid, leaving a debt of Kshs.2,899,031.70. CommCarrier issued two replacement promissory notes and cheques for Kshs.1,449,515.75 each, but these were not honoured. CommCarrier then issued a guarantee and indemnity, letter of mandate, and a general lien over its goods to back up payment of the outstanding sums. Global claimed Kshs.2,990,371.70, while CommCarrier denied the claim and alleged fraud.
Issues
- Whether CommCarrier issued the promissory notes and cheques in good faith
- Whether the replacement promissory notes and cheques were dishonoured due to fraud
Reasoning
The court found that the promissory notes and cheques were issued in good faith and that the replacement promissory notes and cheques were dishonoured due to fraud. The timing of the request for reconciliation of accounts is questioned.
Outcome
Appeal dismissed
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