[2003] KEHC 670 (KLR)
The court found that the plaintiff had established, through documentary evidence and uncontroverted testimony, that the defendant entered into a loan agreement, received the funds, and failed to repay the full amount as agreed. The defendant made partial payments, but a balance of Kshs.86,944 remained unpaid. The...
Source-derived case information.
- Citation
- [2003] KEHC 670 (KLR)
- Parties
- Plaintiff: Thabiti Finance Company Ltd.; Defendant: Francis Njiru Njageh
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Case 3108 of 1985
- Procedural Posture
- Civil Case / Judgment
- Outcome
- judgment for the plaintiff
- Legal Topics
- Loan Default, Debt Recovery, Secured Transactions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Thabiti Finance Company Ltd.
Plaintiff
Francis Njiru Njageh
Defendant
Procedural Posture
Civil Case / Judgment
Legal Issues
- 1 Whether the defendant is liable to repay the outstanding loan amount to the plaintiff as per the loan agreement.
- 2 Whether the plaintiff is entitled to interest and costs on the unpaid principal sum.
Ratio Decidendi
The court found that the plaintiff had established, through documentary evidence and uncontroverted testimony, that the defendant entered into a loan agreement, received the funds, and failed to repay the full amount as agreed. The defendant made partial payments, but a balance of Kshs.86,944 remained unpaid. The defendant did not contest the claim or appear at the hearing despite being served. The court held that the plaintiff was entitled to recover the outstanding principal, interest, and costs from the defendant, as the debt was clearly quantified and liability was not disputed.
Court Disposition
judgment for the plaintiff
Orders
- The defendant shall pay the plaintiff Kshs.86,944.00.
- The defendant shall pay interest on the amount of Kshs.86,944.00.
Full Case Text
Judgment text and source record
27 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI CIVIL CASE NO. 3108 OF 1985
THABITI FINANCE COMPANY LTD. ………………………PLAINTIFF
VERSUS
FRANCIS NJIRU NJAGEH…………………………………DEFENDANT
JUDGEMENT
The Plaint originating this case was filed in 1985, but it could not be heard for some time as the file was lost. The file was only recently reconstructed, following an application by Chamber Summons made by the Plaintiff, filed in the High Court on 16th April, 2003, and heard and determined on 20th June, 2003.
Although the hearing notice was duly served on the Defendant, the Defendant was not represented at the hearing.
The witness for the Plaintiff, Ms Mary Ngati, is an employee of the Deposit Protection Fund, the body that took over the financial affairs of the Plaintiff company when this company went into liquidation. She said that, the Deposit Protection Fund, with which she has worked for some 13 years, is entrusted with the responsibility of receiving all dues in respect of those corporations that fall under receivership.
The witness gave evidence that, a loan account had been opened at the Plaintiff finance company for the Defendant, Mr. Francis Njiru Njageh, in 1983. She produced a letter of offer which the Plaintiff, at that time, wrote to the Defendant, asking him to give his approval by signature for a loan advance of Kenya Shillings 162,000. This loan was to be repaid in a period of twenty-four months, by monthly payments of Kenya Shillings 8,100. The security for this loan was a Nissan Matatu vehicle, Registration Number KUM 359. The witness gave evidence that the Defendant had thereafter made a first repayment, of Kenya Shillings 8,100 in April 1983, and then a further payment of Kenya Shillings 4,000 in July, 1983. The witness produced a statement on the loan account, showing that the Defendant did not make loan repayment in accordance with the agreement that had been made between the parties.
The entries in the loan account showed that the Plaintiff had recorded certain credits in favour of the Defendant, as follows: -
(i) 11th May 1984 Kshs.20,000. 00
(ii) 16th May 1984 Kshs.6,250. 00
(iii) 20th June 1984 Kshs.32,500. 00
(iv) 20th June 1984 Kshs.71,250. 00
This came to a total of Kshs.130,000. 00, which left still unrepaid a balance of Kshs.86,944. 00.
Mr. Ougo for the Plaintiff prayed that the Defendant be ordered to pay -
(i) The unpaid principal sum of Kenya Shillings 86,944;
(ii) Interest on that unrepaid amount; and
(iii) Costs of the suit.
This is a straightforward case in which there is a creditor, a debtor, and a specific mode of quantifying the debt. It is not disputed that the debtor is indebted to the creditor.
I find in favour of the Plaintiff, and determine that the Defendant is liable to pay to the Plaintiff under the following heads: -
(a) An amount of Kenya Shilling 86,944. 00;
(b) interest on the amount set out under (a); and
(c) The costs of the suit.
DATED and DELIVERED at Nairobi this 20th day of November, 2003.
J.B. OJWANG
Ag. JUDGE