JUDGMENT OF THE COURT
This is an appeal from a judgment and decree of the superior court at Bungoma (Ong'udi, J.) dismissing the appellant's claim for the recovery of the principal amount of Shs.800,000.00 allegedly advanced to the respondent as a loan and subsequent accruing interest of Shs.9,911,111.00.
The learned Judge dismissed the suit on the ground that the respondent being a co-operative society had breached the mandatory provisions of the Co-operative Societies Act Cap 490 of the Laws of Kenya (the Act) and Rules 44 and 45 made thereunder in purporting to enter into an illegal agreement with the appellant and by acquiring the loan contrary to the said laid down rules.
The appellant is a wealthy business woman at Bungoma. She owns a shop amongst other properties. She buys and sells maize and fish in large quantities. The respondent, which appears cash strapped and in large debts, is a body corporate established under the Act and is based at the small town of Malakisi. It buys and…