SUSAN JANE SHAH & REKHAVANTI PANKAJ SHAH V. CO-OPERATIVE MERCHANT BANK LTD & GARAM INVESTMENTS LIMITED

JUDGMENT OF THE COURT

Susan Jane Shah and Rekhavanti Pankaj Shah (1^st and 2^nd appellants respectively) were the registered proprietors of land parcel L.R. No. 1870/VIII/15 (I.R. No. 80343) Nairobi (suit property). They were also directors of Unigate Industries Limited (borrower).

Co-operative Merchant Bank Limited (1^st respondent), a limited liability company was a banking institution, which among other things was in the business of lending money, while Garam Investments Limited (the 2^nd respondent), was a limited liability company carrying out auctioneering business.

From the record of appeal before us, the appellants approached the 1^st respondent for a loan facility, and on 10^th June, 1999 they charged their aforementioned property to secure repayment of the loan which was advanced to the borrower. After sometime, the borrower was unable to service the loan. The usual notices were issued and several correspondences exchanged, with the 1^st Respondent threatening to realise the security,…