Sheng Shuang Quarry Limited v Arn Security Consultants and Training Services (Small Claims Appeal E001 of 2025) [2026] KEHC 4586 (KLR) (2 April 2026) (Judgment)
- Court
- High Court of Kenya
- Case number
- 4586
- Citation
- [2026] KEHC 4586 (KLR)
- Decided
- 2 April 2026
The High Court of Kenya at Naivasha dismissed the appeal, finding that the respondent's claims of insolvency and receivership were fraudulent and that the respondent's conduct amounted to bad faith.
Facts
The claimant, Sheng Shuang Quarry Limited, entered into an oral agreement with the respondent, Arn Security Consultants and Training Services, for security services. The claimant provided services until April 2018, when the respondent owed Kshs. 487,200. The respondent claimed insolvency and receivership, but the claimant discovered the respondent was no longer under receivership and refused to pay.
Issues
- Fraudulent misrepresentation by the respondent regarding its financial status and receivership
- Failure to update financial status
- Refusal to pay despite financial capability
- Bad faith in negotiations
Reasoning
The court found that the respondent's representations of insolvency and receivership were false and that the respondent's refusal to pay despite being financially capable was fraudulent and in bad faith.
Outcome
Appeal dismissed
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