INDUSTRIAL & COMMERCIAL DEVELOPMENT CORPORATION (ICDC) V. PATHEON LIMITED

JUDGMENT OF THE COURT

ICDC, the appellant, was both a shareholder and creditor of Pan Vegetable Processors Ltd (PVP) which had an arrangement with Patheon Limited, the respondent, to process dried vegetables for export by the respondent. Following the insolvency of PVP, the appellant placed it under receivership pursuant to a debenture it held over the company?s assets and appointed Mr. Ephraim Majani as a receiver.

Subsequently, by a lease dated 31^st December, 1992 the receiver leased out PVP?s factory situate on L.R No. 1144/681 (suit premises) to the respondent for a period of three years at a monthly rent of Kshs.500,000/=. It is not in dispute that at the time the factory was leased out it was not operational and required some repairs. It was the respondent?s case that it was agreed between the receiver and the respondent as demonstrated by the letter dated 3^rd December, 1992 that the respondent would carry out the necessary repairs and the amount expended would be reimbursed.

In Ju…