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PLATINUM TRADERS LTD V EAST AFRICAN PORTLAND CEMENT & CO. LTD & ANOTHER [2012] KEHC 2189 (KLR)

[2012] KEHC 2189 (KLR) High Court of Kenya
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Court
High Court of Kenya
Case number
2189
Citation
[2012] KEHC 2189 (KLR)
Decided
28 September 2012
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeInjunction ApplicationPosturePlaintiff seeks injunctive orders to restrain the 1st Defendant from demanding payment and the 2nd Defendant from paying a sum of Kshs.71,883,922/72 pursuant to certain guarantees given by the Plaintiff.CoramA. MABEYA
Holding

The application is allowed as prayed. However, the parties are reminded of the provisions of Order 40 Rule 6 of the Civil Procedure Rules.

Facts

The Plaintiff was appointed as a distributor of the 1st Defendant's cement in Garissa and Nairobi East subject to guarantees of Kshs.5 million and Kshs.10 million, respectively. The 1st Defendant demanded payment for Kshs.71,883,922/72 on the two guarantees given by the 2nd Defendant.

Issues

  1. Whether the Plaintiff's rights have been infringed by the 2nd Defendant as to call for an explanation or rebuttal by the latter.
  2. Whether the liability to pay the sum of Kshs.71,883,932.72 other than the impugned guarantee arises out of an agreement dated 29th January, 2009.

Reasoning

The court found that the Plaintiff had established a prima facie case and that the balance of convenience tilts in favour of allowing the injunction and leaving the money in the vaults of the 2nd Defendant.

Outcome

The application is allowed.

Orders

  • The Plaintiff’s Notice of Motion dated 3rd May, 2012 brought under order 40 Rules 1, 2 and 9 of the Civil Procedure Rules seeking injunctive orders to restrain the 1st Defendant from demanding payment and the 2nd Defendant from paying a sum of Kshs.71,883,922/72 pursuant to certain guarantees given by the Plaintiff is allowed.
  • The parties are reminded of the provisions of Order 40 Rule 6 of the Civil Procedure Rules.

Remedies

  • The Plaintiff’s Notice of Motion dated 3rd May, 2012 brought under order 40 Rules 1, 2 and 9 of the Civil Procedure Rules seeking injunctive orders to restrain the 1st Defendant from demanding payment and the 2nd Defendant from paying a sum of Kshs.71,883,922/72 pursuant to certain guarantees given by the Plaintiff is allowed.

Authorities cited

Cases cited (1)
  • Mrao Ltd –vs- First American Bank of Kenya Ltd (2003) KLR 125
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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