ONWARD CARGO SYSTEM COMPANY LIMITED V. EVEREADY EAST AFRICA LIMITED

JUDGMENT OF THE COURT

Onward Cargo Systems Company Limited, the appellant herein, instituted a suit by way of plaint in the Chief Magistrate’s Court at Milimani. In that plaint, the appellant alleged a breach of contract by Eveready East Africa Ltd, the defendant therein and the respondent herein, and claimed the sum of Kshs. 1,861,917.00 as being outstanding due and payable to it. The respondent filed a defence in which it denied liability to the appellant’s claim, and further claimed that it was the appellant who had not only breached the express terms of the contract, but had also committed massive fraud against it. The respondent alleged that as a result of the said fraud, it suffered loss and damage, and counterclaimed for such loss in the sum of Kshs. 7,346,029.00. In addition, the respondent alleged that the conduct of the appellant exposed it in negative light, and therefore claimed punitive damages against the appellant.

Thereafter, the respondent filed an application dated the…