JUBILEE INSURANCE COMPANY LIMITED
V.
KISHOR RAMJI HIRANI & 2 OTHERS

JUDGMENT OF THE COURT

1. The 1^st and 2^nd respondents Kishor Ramji Hirani and Ramji Govind Hirani are the joint registered proprietors of LR NO. 7785/533 (Original LR No. 7785/ 266/2) hereinafter referred to as the suit property.

2. In 1997, the 1^st respondent Kishor Ramji Hirani, applied for a loan of Ksh. 6 million from the appellant Jubilee Insurance Company Limited for purposes of completion of a residential house then being constructed on the suit property. By letter dated 10^th March 1997, the appellant approved the loan of Ksh. 6 million and advised the 1^st respondent it would take security of the suit property. Consequently, through instructions given by the appellant, the 1^st respondent was advanced the sum of Ksh 4 million by Diamond Trust Bank which is an associate company in the appellant group of companies.

3. By letter dated 3^rd April 1997, Diamond Trust Bank on instructions of the appellant approved a loan of Ksh. 4 million to the respondents. It was agreed the balance of Ks…