KENINDIA ASSURANCE COMPANY LIMITED V. COMMERCIAL BANK OF AFRICA LIMITED, NJOROGE MUNGAI & SURENDER JETHLAL SHAH

JUDGMENT OF THE COURT

This is an appeal from the ruling of the superior court (P.J. Ransley – Commissioner of Assize – as he then was – “the Commissioner”) delivered on 24^th November, 1999 in which the learned Commissioner gave summary judgment in favour of the plaintiff Commercial Bank of Africa Ltd against the 1^st Defendant Kenindia Assurance Co. Ltd in the High Court Civil Case No. 1347 of 1998.

By a plaint dated 18^th June, 1998 Commercial Bank of Africa Ltd as the plaintiff sued Kenindia Assurance Company Ltd as 1^st Defendant, Njoroge Mungai as 2^nd Defendant and Surendra Jethalal Shah as the 3^rd Defendant. In that plaint the plaintiff sought judgment to be entered against the defendants as follows: -

“(a) As against the 1^st Defendant: -

(i) Principal amount under the Financial Guarantees as at the date of first demand namely 13^th November, 1997 .............. Kshs. 20,000,000/=.

(ii) Interest on (i) above at the rate of 31.5% per annum from 13^th November, 1997 until 31^st May, 1998 ....…