GURBAKSH SINGH & SONS LIMITED V. BANK OF CREDIT & COMMERCE INTERNATIONAL (OVERSEAS) LIMITED & 3 OTHERS

JUDGMENT

The applicant, together with four others, three of whom were its directors, and one of whom is their brother, began an action in the High Court (Civil Suit No 2435 of 1982) against the first respondent bank, claiming that the interest charged by the bank on its overdraft, exceeded the rate laid down by the Central Bank of Kenya in exercise of its powers under section 39 of the Central Bank of Kenya Act (cap 491). Consequently, it claimed that the whole transaction, including the loan, the debenture and the mortgages executed on the individual plaintiffs’ property at LR 209/138/ 91 Nairobi, as security, were thereby tainted with illegality ab initio, and were consequently null and void and irrealisable.

The applicant also claimed a perpetual injunction to restrain the bank and its servants or agents, inter alia, from appointing or attempting to appoint a receiver and manager or enforcing the debenture in any way. Simultaneously, it sought a temporary injunction against the bank …