JUDGMENT OF THE COURT
In the year 1975, Industrial and Commercial Development Corporation “the 2nd respondent”, a statutory corporation, advanced to Welsa Bange Oganda “the 1st respondent” a loan facility to the tune of Kshs.300,000/-. As security for the loan the 1st respondent charged his property known as MOMBASA/BLOCK /X/291 “the suit premises” to the 2nd respondent. The purpose of the loan was to develop the suit premises into a hotel and rental flats. Before payment in full of the advanced monies, the 1st respondent again approached the 2nd respondent for another loan facility amounting to Kshs.294,000/-. A further loan agreement dated 19th March 1981 was entered into by the two parties and a further charge created on the suit premises. In 1985, the two loan facilities were amalgamated into one “for ease of management” according to the 2nd respondent and the 1st respondent was thereafter required to pay a monthly sum of Kshs.9,104.50 for a revised period of ten (10) months to set…