[2004] KEHC 894 (KLR)
The court found that the plaintiff had adduced clear and uncontroverted evidence demonstrating the defendant's indebtedness arising from various loan and overdraft facilities. The defendant, having been duly served with a hearing notice, failed to attend court or contest the claim. The documentary evidence,...
Source-derived case information.
- Citation
- [2004] KEHC 894 (KLR)
- Parties
- Plaintiff: Kenya Commercial Bank Limited; Defendant: Sheikh Abdullahi Mohamud
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 2106 of 2000
- Procedural Posture
- Civil Case / Ex Parte Judgment After Hearing; Defendant Absent
- Outcome
- Judgment for the plaintiff.
- Legal Topics
- Loan Default, Overdraft Facility, Bank Customer Relationship, Compound Interest
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Commercial Bank Limited
Plaintiff
Sheikh Abdullahi Mohamud
Defendant
Procedural Posture
Civil Case / Ex Parte Judgment After Hearing; Defendant Absent
Legal Issues
- 1 Whether the defendant is indebted to the plaintiff for the sums claimed under various loan and overdraft facilities.
- 2 Whether the plaintiff has proved its claim on a balance of probabilities.
- 3 Whether the plaintiff is entitled to interest and costs as prayed.
Ratio Decidendi
The court found that the plaintiff had adduced clear and uncontroverted evidence demonstrating the defendant's indebtedness arising from various loan and overdraft facilities. The defendant, having been duly served with a hearing notice, failed to attend court or contest the claim. The documentary evidence, including signed letters of offer and bank statements, established the amount owed. The court was satisfied that the plaintiff had proved its case on a balance of probabilities and was entitled to judgment for the sum claimed, together with compound interest and costs as prayed.
Court Disposition
Judgment for the plaintiff.
Orders
- Judgment for the plaintiff against the defendant for Kshs 1,838,192.55 together with compound interest thereon at the rate of 40% per annum from 31st August, 2000 until payment in full.
- Costs of the suit with interest thereon at the rate of 14% to the plaintiff.
Full Case Text
Judgment text and source record
40 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
COMMERCIAL DIVISION, MILIMANI
CIVIL CASE NO. 2106 OF 2000
KENYA COMMERCIAL BANK LIMITED .………………………….PLAINTIFF
VERSUS
SHEIKH ABDULLAHI MOHAMUD…………………………..……..DEFENDANT
J U D G M E N T
When this case came up for hearing the defendant’s counsel who had been served with the hearing notice
failed toattend court and the case proceeded ex parte.
P w 1 was an employee of the Plaintiff’s bank Tom Mboya street and she confirmed that she was familiar
with the defendant’s account, and the transaction related to it.
In her testimony Pw 1 said that the defendant was granted a loan in 1996 from the Plaintiff’s Mandera Branch,
ofkshs 75, 000/- after accepting the offer thereof by signing the letter of offer.On 26th October 1997 the defendant
requestedthe transfer of his account to the Plaintiff’s Tom Mboya street branch.
At the Plaintiff’s branch at Tom Mboya Street the defendant on 27th July 1988 was offered an overdraft facility
of kshs 300, 000 which he accepted. On his request the Plaintiff offered the defendant a further loan of kshs 200, 000
on 17th January, which offer he accepted. This later loan brought the defendant’s indebtedness to the plaintiff to
kshs 474,027. 90.
On 2nd October 1990 the defendant was granted a further over draft facility of kshs 180, 000 which he signified
his acceptance by signing the letter of offer.
At the defendant’s request the plaintiff on 27th February 1992 converted the defendants over draft facility of
kshs 180, 000/- into an additional loan, which brought the defendant’s total indebtedness to kshs 384, 193. 05.
On 14th July 1992 at the request of the defendant the plaintiff offered the defendant and he accepted a further
loan of kshs 300, 000 whichmade his total debt to be kshs 620, 758.
At this point Pw 1 said the defendant began to default in his repayments and on demand being made he made
proposalfor settlement but he failed to honor those proposals. Pw 1 referred to the defendant’s bank statements,
which indicatedthat as at 30. 9.2000 the defendant owed the plaintiff kshs 1, 838, 192. 50, which is the amount the
plaintiff claims in this action with, interest plus costs of the suit.
The plaintiff’s evidence was very clear, the documents produced by P.w. 1clearly indicated the defendant’s
indebtedness. I am therefore satisfied that the plaintiff has proved its case on a balanceof probability and is deserving
judgment as prayed.
The judgment of this court is as follows: -
(a) Judgment for the plaintiff against the defendant for kshs 1, 838, 192. 55
together with compound interest thereon at the rate of 40% per annum as from 31st August, 2000 until
payment in full.
(b) Costs of this suit with interest thereon at the rate of 14% to the plaintiff.
Dated and delivered this 9th December2004.
MARY KASANGO
AG JUDGE