DIAMOND TRUST BANK KENYA LTD
V.
KAJULU HOLDINGS LTD (IN RECEIVERSHIP) & ANOR

JUDGMENT OF THE COURT

Although the memorandum of appeal raises seven grounds, in our own estimation the only question we gather from the totality of those grounds and the arguments contained in the parties’ written submissions, is whether the learned Judge, (Ochieng, J.), in rejecting the appellant's notice of motion for striking out of the respondents’ suit improperly exercised his discretion.

This, briefly is how the question arose.

Kajulu Holdings Limited (the 1^st respondent), as a customer to Diamond Trust Bank Limited (the appellant) operated several bank and loan accounts with the latter. By a debenture dated 18^th December, 2007 the 1^st respondent charged to Commercial Bank of Africa Limited (the 2^nd respondent) property and assets “of whatsoever nature both present and future” to secure a sum of Kshs.620,000,000. By a supplementary debenture dated 8^th July, 2009 the original amount secured was enhanced by Kshs.82,754,000.

When the 1^st respondent began to experience financial diffic…