WAB HOTELS LTD (IN RECEIVERSHIP) & JOSEPH WAMBUA MULUSYA V. INDUSTRIAL DEVELOPMENT BANK LTD, LAWRENCE ODORI NABWANA, PONANGIPALLI VENKATA RAMANA RAO & KOLLURI VENKATA SUBBARAYA KAMA SASTRY

JUDGMENT OF THE COURT

BACKGROUND

1. This is an interlocutory appeal against the ruling of the High Court (Ochieng, J.) dated 15th May, 2017 wherein the learned Judge dismissed the application dated 28th March, 2016 filed by the appellants (as Plaintiffs in the High Court) seeking leave to further amend their amended plaint dated 16th September, 2005. The application was filed by Wab Hotels Ltd (In receivership), the 1st appellant herein and Joseph Wambua Mulusya (the 2nd appellant) and was supported by an affidavit sworn by the 2nd appellant, the Managing Director of the 1st appellant.

2. In a nutshell the background is that on 29th December, 1998, the appellants obtained a loan of Ksh 25,000,000 from Industrial Development Bank (the 1st respondent) secured by a debenture (the Debenture) and a first legal charge over L.R No. Nairobi Block 75/1031 (the suit property) situated in Buruburu, Nairobi. Erected on the suit property is a hotel referred to as Wab Hotel (the Hotel).

3. The appellan…