JUDGMENT OF THE COURT
1. It is apparent that the appellants and the 1st respondent had a long standing bank/customer relationship. The 1st respondent not only extended several facilities to the appellants but also to Njoka Tanners Limited (herein after referred to as the company) wherein the appellants were directors as well as the majority shareholders. Of relevance is an overdraft facility of Kshs. 9,000,000/= which was issued to the company vide a letter of offer dated 27th May, 1998. The same was secured by a guarantee executed by the appellants and charges registered on various properties belonging to the appellants.
2. Later on, the company fell into arrears but fortunately a repayment proposal made by the company was accepted by the 1st respondent. According to the appellants, they learnt on 17th December, 2002 that the 1st respondent had fraudulently instructed the 2nd respondent to sell the charged properties despite the fact that the requisite statutory notice of sale had not …