RULING OF THE COURT
In November 1984, the appellant borrowed a sum of Kes.189,000/= from the respondent (the bank) to purchase a posho mill and weighing machine for his business. That loan was secured by a charge registered against the appellant’s 28-acre piece of land situate in Kakamega County and known as Title No. Kakamega/Chekalini/416 (the charged property).
The appellant defaulted in the repayment of that loan. He pleaded with the bank, which on several occasions, postponed scheduled auctions to realize the security. In May 1988, the bank allowed him to subdivide the charged property and to sell a portion thereof to clear or reduce his indebtedness. He subdivided the charged property into four portions and sold one of them on 8th October 1990 for Kes.180,000/= which was paid to the bank. In the appellant’s view, that should have cleared his indebtedness with the bank but he was advised that after that payment, there was still a balance of Kes.340,000/=. At the bank’s request, he …