Patel v Southern Credit Banking Corporation Limited & 3 others (Civil Application E711 of 2025) [2026] KECA 392 (KLR) (27 February 2026) (Ruling)

Facts

The Bank sued the appellant and other respondents for Kshs 215,607,678.96, claiming that the respondents were directors of Eagle Aviation Limited and had signed a debenture and personal guarantees. The Bank alleged that the debenture was fraudulently released by the 2nd respondent, the Executive Director of the principal debtor.

Issues

1. Whether the intended appeal will render the judgment nugatory due to the execution of the judgment against the applicant for a corporate debt.
2. Whether the Bank will be able to refund the decretal sum if the appeal is successful.

Reasoning

The court found that the Bank is a financial institution governed by the Central Bank of Kenya and will have no difficulty in refunding the decretal sum if the appeal is successful. The court also noted that the acquisition of shares did not discharge the applicant from his liability as a guarantor.

Outcome

Application dismissed