RAOL INVESTMENTS LIMITED V. LAKE CREDIT FINANCE LIMITED

RULING OF THE COURT

On 8th July 1997, the superior court (Hayanga J.) in exercise of its jurisdiction under O.35 rules 1 and 2 of the Civil Procedure Rules granted Raol Investments Limited, which for purposes of convenience we shall hereafter refer to as the applicant, leave to defend the suit which was pending before that court against it but conditional on it paying to Lake Credit Finance Limited, the Plaintiff in the suit and the respondent in the application before us, a sum of Kshs.10,000,000/= within fourteen days. There was a default clause attached to the order that failing payment the applicant's property known as Kisumu Municipality Block 8/237 would be transferred to Lake Credit Finance Limited (the Respondent) free from any encumbrances. The applicant did not and does not think such an order could properly be made in a summary procedure under O.35 rules 1 and 2 above. On 10th July 1997 it filed a notice of appeal declaring its intention to appeal against the order, and on 2…