[2001] KEHC 423 (KLR)
The court found that the plaintiff had established its claim on a balance of probabilities. The 1st defendant was contractually bound to repay all charges incurred on the credit card, and the 2nd defendant was liable as guarantor. The restructuring of the account and the application of a lower interest rate were not...
Source-derived case information.
- Citation
- [2001] KEHC 423 (KLR)
- Parties
- Plaintiff: National Bank of Kenya Limited; Defendant: Rajesh Kapoor; Defendant: Valeo (K) Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 1227 of ??
- Procedural Posture
- Civil Suit / Judgment
- Outcome
- Judgment for the plaintiff against the defendants, jointly and severally.
- Judges
- T Mbaluto
- Legal Topics
- Credit Card Liability, Guarantee Enforcement, Interest Rate Disputes
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
National Bank of Kenya Limited
Plaintiff
Rajesh Kapoor
Defendant
Valeo (K) Limited
Defendant
Procedural Posture
Civil Suit / Judgment
Legal Issues
- 1 Whether the 1st defendant is liable to repay the outstanding credit card charges to the plaintiff.
- 2 Whether the 2nd defendant is liable as guarantor for the outstanding sums.
- 3 Whether the plaintiff is entitled to interest at the restructured rate and costs.
Ratio Decidendi
The court found that the plaintiff had established its claim on a balance of probabilities. The 1st defendant was contractually bound to repay all charges incurred on the credit card, and the 2nd defendant was liable as guarantor. The restructuring of the account and the application of a lower interest rate were not contested by the defendants. The outstanding sum as at 31.12.2000 was proved, and the plaintiff was entitled to judgment for that amount, interest at the restructured rate from 1.1.2001, and costs. The liability of the defendants was joint and several.
Court Disposition
Judgment for the plaintiff against the defendants, jointly and severally.
Orders
- Defendants to pay the plaintiff Shs.689,917.11 jointly and severally.
- Interest at 23% per annum from 1.1.2001 until payment in full.
Full Case Text
Judgment text and source record
15 paragraphs
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI COMMERCIAL COURTS
CIVIL SUIT NO. 1227 OF 2000
NATIONAL BANK OF KENYA LIMITED …………….... PLAINTIFF
VERSUS
RAJESH KAPOOR …………………………………… 1ST DEFENDANT
VALEO (K) LIMITED ……………………………….. 2ND DEFENDANT
JUDGMENT
This claim arises from the use of a credit card issued by the plaintiff to the defendant.
The plaintiff is a limited liability company incorporated in Kenya. On 9. 3.1996, the 1st defendant who is an individual applied to it for and was issued with a Visa International Card. The terms and conditions of issuance of the card are contained in an agreement signed by the parties on 16. 5.96. One of those conditions was that the 1st defendant would repay to the plaintiff any charges which the plaintiff would incur in connection with the 1st defendant’s use of the card. Interest on such charges would be levied at the rate of 7% per annum. That sum was however reduced to 3. 5%. The 2nd defendant guaranteed repayment of the sums aforesaid.
According to the evidence tendered by the plaintiff’s witness, after the card had become operational and the plaintiff had demanded payment without receiving any from the defendant, it was realised that the account was building up too fast. Consequently a decision was unilaterally made to restructure the account and to transfer the amount then outstanding to a new account with a lower rate of interest of 23% per annum which was equivalent to 1. 9% per month. The restructured account was given a new number 427 35 000 200 7739. However, despite that indulgence, the 1st defendant did not service the account and as at 31. 12. 2000, the sum of Shs.689,917/11 was outstanding thereon. That is the amount the plaintiff claims against the defendants.
On the basis of the evidence tendered herein, I am satisfied that the plaintiff has established its case against the defendants on a balance of probabilities. Accordingly, I enter judgment in its favour against the defendants, jointly and severally, for Shs.689,917/11 together with interest thereon at the rate of 23% p.a. from 1. 1.2001. The defendants will jointly and severally bear the plaintiff’s costs of the suit.
Dated at Nairobi this 19th day of January, 2001.
T. MBALUTO
JUDGE