[2000] KEHC 469 (KLR)
The court found that the plaintiff's evidence, including the affidavit of Mr. Lagat, was uncontroverted due to the defendants' failure to file any response. The 1st defendant was shown to have applied for and used the credit card, while the 2nd defendant guaranteed the debt. The contractual documents provided for...
Source-derived case information.
- Citation
- [2000] KEHC 469 (KLR)
- Parties
- Plaintiff: National Bank of Kenya Ltd; Defendant: Ali Mohamed Ali; Defendant: Another (unnamed)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Case 360 of 1998
- Procedural Posture
- Summary Judgment Application / Ruling
- Outcome
- summary judgment entered for plaintiff
- Legal Topics
- Credit Card Debt, Guarantee Liability, Summary Judgment, Interest Rates
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
National Bank of Kenya Ltd
Plaintiff
Ali Mohamed Ali
Defendant
Another (unnamed)
Defendant
Procedural Posture
Summary Judgment Application / Ruling
Legal Issues
- 1 Whether the defendants are liable for the outstanding credit card debt claimed by the plaintiff.
- 2 Whether summary judgment should be entered in favour of the plaintiff under Order 35 rule 1 of the Civil Procedure Rules.
- 3 Whether the interest rate of 7% per month claimed by the plaintiff is reasonable and justifiable.
Ratio Decidendi
The court found that the plaintiff's evidence, including the affidavit of Mr. Lagat, was uncontroverted due to the defendants' failure to file any response. The 1st defendant was shown to have applied for and used the credit card, while the 2nd defendant guaranteed the debt. The contractual documents provided for interest, but the court found the claimed rate of 7% per month to be excessive and instead awarded interest at prevailing bank rates. The court concluded that the defendants were jointly and severally liable for the outstanding sum and granted summary judgment in favour of the plaintiff, together with costs and interest at a reasonable rate.
Court Disposition
summary judgment entered for plaintiff
Orders
- Judgment entered in favour of the plaintiff against the defendants jointly and severally for Kshs 499,646.32.
- Interest awarded at prevailing bank rates from December 31, 1996.
Full Case Text
Judgment text and source record
11 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (MILIMANI LAW COURTS)
CIVIL CASE 360 OF 98
NATIONAL BANK OF KENYA LTD.....................PLAINTIFF
v
ALI MOHAMED ALI & ANOTHER........................DEFENDANT
RULING
This is an application for summary judgment under Order 35 rule 1 of the Civil Procedure Rules. It is supported by an affidavit sworn on May 5, 2000 by Mr William Lagat, the head of the applicant’s legal department. No replying affidavit has been filed by or on behalf of any of the two defendants and accordingly, what Mr. Lagat states in his affidavit stands uncontroverted.
The plaintiff’s claim against the defendants is for money due on a credit card. The affidavit of Mr Lagat reveals that the 1st defendant applied for a credit card which the 2nd defendant guaranteed. Both regular and penalty interest for late payment was reserved by clause 5 of the conditions of issue of the card. There is clear evidence that the 1st defendant did not pay the amounts due on the use of the card and that as at December 30, 1996, the sum of Kshs 517,666. 30 was due in respect thereof. Further interest accrued thereon at the rate of 7% per month from December 31, 1996.
On the basis of the evidence summarised above, I am satisfied that the defendants are severally and jointly liable to the plaintiff in the sum claimed in the plaint. Accordingly, I allow the application and enter judgment in favour of the plaintiff against the defendants severally and jointly for Kshs 499,646. 32 together with costs. Regarding interest, I consider the rate of 7% per month claimed to be unreasonably high and unjustifiable. I allow interest at the prevailing bank rates. The defendants will bear the plaintiff’s costs of this application.