[2020] KEHC 5424 (KLR)

[2020] KEHC 5424 (KLR)

The court found that the 1st plaintiff authorized the transfer of funds to Kaka Wholesalers Ltd and to its director, based on the evidence of written instructions signed by the directors. The court gave greater weight to the defendant's handwriting expert, who confirmed the authenticity of the signatures, and noted the plaintiffs failed to report any alleged forgery to the police or raise complaints with the bank at the material time. The court also found that the plaintiffs were regularly supplied with bank statements and did not demonstrate any errors or anomalies. On the issue of interest, the court held that the In duplum rule was not breached, as the interest charged did not exceed...

Citation
[2020] KEHC 5424 (KLR)
Parties
Plaintiff: Lamsons Industries Ltd; Plaintiff: Lams Investments Limited; Defendant: Investment and Mortgage Bank Ltd; Defendant: Sportlight Interceptors Ltd
Court
High Court
Court Station
High Court at Nakuru
Jurisdiction
Kenya
Judgment Date
21 May 2020
Case Number
Civil Suit 55 of 2011
Procedural Posture
Civil Suit / Judgment
Outcome
suit dismissed
Judges
RB Ngetich
Legal Topics
Loan Facilities, Guarantees and Indemnities, Bank Customer Relationship, In Duplum Rule, Power of Sale, Forgery Allegations
Source Language
English
Banking and Finance Civil Procedure Loan Facilities Guarantees and Indemnities Bank Customer Relationship In Duplum Rule Power of Sale Forgery Allegations

Case Brief

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Parties

Lamsons Industries Ltd

Plaintiff

Lams Investments Limited

Plaintiff

Investment and Mortgage Bank Ltd

Defendant

Sportlight Interceptors Ltd

Defendant

Procedural Posture

Civil Suit / Judgment

Legal Issues

  1. 1 Whether the 1st defendant transferred funds to Kaka Wholesalers and third parties without authorization from the 1st plaintiff.
  2. 2 Whether the 1st plaintiff was supplied with bank statements as required.
  3. 3 Whether the 1st defendant violated the In duplum rule in charging interest.

Ratio Decidendi

The court found that the 1st plaintiff authorized the transfer of funds to Kaka Wholesalers Ltd and to its director, based on the evidence of written instructions signed by the directors. The court gave greater weight to the defendant's handwriting expert, who confirmed the authenticity of the signatures, and noted the plaintiffs failed to report any alleged forgery to the police or raise complaints with the bank at the material time. The court also found that the plaintiffs were regularly supplied with bank statements and did not demonstrate any errors or anomalies. On the issue of interest, the court held that the In duplum rule was not breached, as the interest charged did not exceed...

Court Disposition

suit dismissed

Orders

  • Plaintiff’s suit against the defendants is dismissed.
  • The court declines to restrain the 1st defendant from exercising its power of sale over the 2nd plaintiff’s property known as L. R No. Nakuru Municipality Block 8/5 and L.R Nakuru Municipality Block 11/59.