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High Court injunction ruling on seized vehicles under a hypothecation agreement. The court held the creditor could not sell or impound the vehicles without court intervention.
The agreement between the parties created only a charge or pawn, not a mortgage or pledge, and did not empower the respondent to seize and sell vehicles without court intervention. Since the respondent was not in possession and no contractual clause allowed extrajudicial seizure and sale, only the court can enforce such rights. Temporary injunction is granted to restrain respondents from disposing or impounding vehicles pending determination of the main suit.
Source excerpt
The High Court held that a motorcycle had been pledged as security for a loan, restoring the primary court’s judgment and allowing the appellant to retain it.
High Court appeal over whether cattle given as security for a loan was a pledge or a sale. The court held it was a pledge and dismissed the appeal.
The High Court upheld findings that the appellant blocked repayment of a loan secured by a pledged shamba and relied on a fake sale document. The appeal was dismissed.
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