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Diamond Trust Bank Kenya Ltd v. Kajulu Holdings Ltd (In receivership) & Commercial Bank of Africa Ltd

(2017) JELR 102724 (CA)

Court of Appeal  •  Civil Appeal 369 of 2014  •  24 Mar 2017  •  Kenya

Milton Stephen Asike Makhandia, William Ouko, Kathurima M'inoti



Although the memorandum of appeal raises seven grounds, in our own estimation the only question we gather from the totality of those grounds and the arguments contained in the parties’ written submissions, is whether the learned Judge, (Ochieng, J.), in rejecting the appellant's notice of motion for striking out of the respondents’ suit improperly exercised his discretion.

This, briefly is how the question arose.

Kajulu Holdings Limited (the 1st respondent), as a customer to Diamond Trust Bank Limited (the appellant) operated several bank and loan accounts with the latter. By a debenture dated 18th December, 2007 the 1st respondent charged to Commercial Bank of Africa Limited (the 2nd respondent) property and assets “of whatsoever nature both present and future” to secure a sum of Kshs.620,000,000. By a supplementary debenture dated 8th July, 2009 the original amount secured was enhanced by Kshs.82,754,000.

When the 1st respondent began to experience financial diffic…

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