RULING
The applicant, Gurcharan Dass Aggarwal, was sued by the respondent, Paresh Mandalia , in the superior court at Eldoret for recovery of a sum of Shs.3,500,000/= plus interest. The cause of action as pleaded was non-payment of a friendly loan advanced to the applicant by the respondent during the year 1999. The sum of Shs.3,500,000/= was allegedly advanced by way of delivery up by the respondent to the applicant of bearer certificates of deposit amounting to Shs.3,500,000/=. The respondent was the holder of the said bearer certificates. He transferred the same to the applicant on or about 16th February, 1999 and such ‘transfer’ was noted by Reliance Bank Limited (the issuer of the said certificates) on that date. On 30th October, 2000 Reliance Bank Limited credited to the applicant’s account the value of the said bearer certificates. The credit advice in the sum of Shs.3,500,000/= issued by the said bank reads:
“To amount of Bearer certificates of deposits (BCDS) placed under lien …