[2001] KEHC 586 (KLR)
The court found that the plaintiff had advanced a loan to the 1st defendant, which was guaranteed by the 2nd defendant and secured by land. Upon default, the plaintiff lawfully exercised its statutory power of sale, but the proceeds from the sale of the securities were insufficient to cover the outstanding debt. The...
Source-derived case information.
- Citation
- [2001] KEHC 586 (KLR)
- Parties
- Plaintiff: Industrial & Commercial Development Corporation; Defendant: Patrick Gukura Muraya; Defendant: Nderitu Julius
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 2124 of ??
- Procedural Posture
- Civil Case / Judgment
- Outcome
- judgment for the plaintiff
- Judges
- JL Osiemo
- Legal Topics
- Loan Default, Guarantee Liability, Realisation of Security, Statutory Power of Sale
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Industrial & Commercial Development Corporation
Plaintiff
Patrick Gukura Muraya
Defendant
Nderitu Julius
Defendant
Procedural Posture
Civil Case / Judgment
Legal Issues
- 1 Whether the defendants are liable to pay the outstanding loan balance after the securities were realised.
- 2 Whether the plaintiff is entitled to judgment for the unpaid balance, costs, and interest.
Ratio Decidendi
The court found that the plaintiff had advanced a loan to the 1st defendant, which was guaranteed by the 2nd defendant and secured by land. Upon default, the plaintiff lawfully exercised its statutory power of sale, but the proceeds from the sale of the securities were insufficient to cover the outstanding debt. The defendants failed to oppose the suit or present any defence. Accordingly, the court held that the plaintiff was entitled to judgment for the unpaid balance, together with costs and interest, as prayed in the plaint.
Court Disposition
judgment for the plaintiff
Orders
- Judgment entered for the plaintiff against the defendants for KES 2,077,340.25 as prayed in the plaint with costs and interest.
Full Case Text
Judgment text and source record
8 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI MILIMANI COMMERCIAL COURTS CIVIL CASE NO. 2124 OF 2000
INDUSTRIAL & COMMERCIAL DEVELOPMENTCORPORATION……………………………………………….PLAINTIFF VERSUS PATRICK GUKURA MURAYA………………………1ST DEFENDANT NDERITU JULIUS……………………………………2ND DEFENDANT
J U D G M E N T
By a loan agreement dated 2nd May 1995, the plaintiff advanced the sum of Sh,1,500,000/- to the 1st Defendant payable with interest at the rate of 24% per annum by 60 monthly instalment of Sh.44,015/- each. The 2nd Defendant guaranteed the repayment of the loan plus interest. The 1st Defendant offered Land Title L.R.NO. KABARU/BLOCK 1/TAGWA/243 as security while the 2nd Defendant offered L.R. NO. IRIANI/GATUNDU/612 as security.
The 1st Defendant defaulted to service the loan and the plaintiff in the exercise of its statutory power realised the securities over the said parcels of land. The balance outstanding at the time of auction was Sh.3,314,343. 70 and the securities realised only sh.1,512,500/- leaving unpaid balance of sh.2,077,340. 25 which is the subject matter of this suit. The defendants were served but never filed any grounds of opposition nor did they appear to oppose this application.
That being so, I allow the application and grant order as prayed. Judgment is entered for the Plaintiff against the defendant for Sh.2,077,340. 25 as prayed in the plaint with costs and interest.
Dated this 8th day of November, 2001.
J.L.A. OSIEMO JUDGE