JUDGMENT OF THE COURT
Fina Bank Limited, (1st respondent), (hereinafter referred to as “The Bank”) was a limited liability company carrying out banking business under the Banking Act (Cap 488 Law of Kenya).
Gurbux Singh Bhogal (appellant); Samcon Limited (2nd respondent); Narwar Singh Bhogal (3rd respondent) and Paramjit Singh Bhogal (4th respondent) used to bank with the 1st respondent during the period in question.
It is not disputed that the Bank entered into an arrangement with the 2nd respondent whereby the latter would be availed term loan facilities, or other financial accommodation for an amount that was not to exceed Kshs. 40,000,000/=. From the letter of offer dated 26th January 1998, which was in response to the 2nd respondent’s application dated 12th January 1998, the facility was supposed to be for a period of 48 months.
In consideration of the said term loan facility, the appellant, 3rd and 4th respondents, who were directors of the 2nd respondent, each signed a Guarantee an…