Canva Trading Kenya Ltd Mombasa v Masita (Tribunal Case 28 of 2021) [2022] KEMSET 747 (KLR) (Civ) (28 July 2022) (Judgment)
- Court
- KEMSET
- Case number
- 747
- Citation
- [2022] KEMSET 747 (KLR)
- Decided
- 28 July 2022
The tribunal finds that the respondent cannot challenge the validity of the process she consented to, and that the In duplum rule applies, limiting the amount of interest that can be charged.
Facts
The respondent applied for an emergency loan of Ksh 80,000/= from the claimant, Canva Trading Kenya Ltd Mombasa. The loan was to be repaid within one month, but 32 months have lapsed before full repayment was made. The respondent claimed to have repaid some amount through the auctioneer or Mr. Eliud, but the claimant disputes this.
Issues
- Whether the claimant could charge interest
- Whether the claimant was justified to demand Ksh 592,000/= as the principal sum and accrued interest
- Whether the amount paid by the respondent to the auctioneer and Eliud should be considered valid repayments
Reasoning
The tribunal applies the In duplum rule, which prevents interest from accumulating once it equals the principal amount borrowed, to limit the amount of interest that can be charged.
Outcome
The respondent is ordered to pay Ksh 78,000/= in three installments over the next three months.
Orders
- The respondent shall pay Ksh 80,000/= as the principal sum
- Less the amount of Ksh 41,000/= already paid
- The outstanding balance of Ksh 39,000/= multiplied by 2 equals Ksh 78,000/=
Remedies
- The respondent is ordered to pay the outstanding balance of Ksh 78,000/= in three installments over the next three months
Authorities cited
Legislation (2)
- Banking Act
- In duplum rule
Cases cited (2)
- Kenya Hotels Ltd v Oriental commercial bank Ltd
- Mwambeja Ranching Company Limited & another v. Kenya National Capital Corporation
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