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Ecomil Pasag Co. Limited, Samuel Muiru Gichugu & Peter Njuguna Kimana v. UAP Insurance Co. Limited

(2017) JELR 102550 (CA)

Court of Appeal  •  Civil Appeal 202 of 2014  •  31 Mar 2017  •  Kenya

Philip Nyamu Waki, Erastus Mwaniki Githinji, Patrick Omwenga Kiage



1. This is an interlocutory appeal. The parties in the main suit before the High Court are locked in a dispute over a performance guarantee for a contract which was to be performed in Rwanda with the Ministry of Agriculture (MINAGRI). The plaintiffs in the suit aver that they paid a premium and executed legal charges over two properties in Kenya in consideration of the defendant issuing the performance guarantee to MINAGRI, but none was issued. Instead, at the request of the plaintiffs, a Rwandese company known as CORAR issued the required performance guarantee. The plaintiffs seek a declaration that no liability arose between them and the defendant for want of consideration. They also seek permanent injunctions to stop the defendant from threatening to auction their properties since the charges were without any legal or factual basis.

2. On the other hand, the defendant in that suit contends that it is the one which arranged with CORAR, as its quasi agent, for iss…

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