<p class="ql-align-center"><strong>JUDGMENT OF THE COURT</strong></p><p class="ql-align-justify">During the year 1991 the first appellant sought a loan facility from the respondent (the bank) and the bank agreed to grant such facility. The purpose of the loan was to provide working capital for the business of the first appellant. The loan was secured by various properties charged to the bank. Some of the properties belonged to the second appellant and others to some of his relatives. In addition to the security of the properties there was also a floating debenture and guarantee by the directors of the first appellant.</p><p class="ql-align-justify">The first appellant kept on servicing that loan (the first loan) by paying a sum of shs.12,000/- per month.</p><p class="ql-align-justify">Thereafter the first appellant applied for and obtained further facilities from the bank on the strength of the same securities. These facilities were:</p><p class="ql-align-justify">(a) A loan facility of shs.2,500,000 to complete the Construction of commercial building in Murang’a; and</p><p class="ql-align-justify">(b) An overdraft of shs.3,000,000/= to provide for the Distributorship and wholesale bu…</p>