ST ELIZABETH ACADEMY-KAREN LIMITED V. NATIONAL BANK OF KENYA LIMITED & G A LIFE ASSURANCE LIMITED

JUDGMENT OF THE COURT

1. St. Elizabeth Academy-Karen Limited (the appellant) is a limited liability company which owns and runs a school going by the name of St. Elizabeth Academy. The school stands on part of land Title Numbers 1159/140 and 1159/377 (suit properties) situate at Karen in Nairobi. Part of the land is also used for farming to provide food for the students and as their training ground for basic agriculture.

2. Sometime in 2009, the appellant borrowed money from National Bank of Kenya Limited (the 1^st respondent) on terms stipulated in the mortgage agreements. The loan was secured by mortgages, one payeable within 7 years and the other payeable within a period of 15 years. The appellant charged several of its properties to secure the two loans amongst them the suit properties herein. According to the appellant, due to the vagaries of the economy in the country at the time and the rising interest rates, it was unable to service the loan as anticipated and soon fell into arre…