CURACID KENYA LIMITED v EAST AFRICAN DEVELOPMENT BANK [2008] KEHC 1834 (KLR)

Facts

The plaintiff, Curacid Kenya Limited, entered into a loan agreement with the defendant, East African Development Bank, on 18th July, 2002. The plaintiff failed to fulfill its repayment obligations and requested rescheduling of the repayment dates multiple times. The defendant agreed to each request and waived its right to treat the plaintiff's failure as a breach of contract. The plaintiff then filed a legal action seeking an injunction to restrain the defendant from enforcing its rights under the contract. The defendant denied liability and agreed to accept the plaintiff's request for payment of US$579,987.27, with certain conditions.

Issues

1. Whether the plaintiff is entitled to an injunction to restrain the defendant from enforcing its rights under the contract.
2. Whether the defendant can be held liable for the plaintiff's default on the terms of the agreement dated 9th November, 2007.

Reasoning

The plaintiff was in default on the terms of the agreement dated 9th November, 2007, and the defendant's notice of default was a lawful exercise of its rights under the contract. The plaintiff's conduct was not oppressive, and the defendant's conduct was not a manifestation of a party wanting to accommodate another party in default.

Outcome

The application for injunction is dismissed with costs to the defendant.