RULING OF THE COURT
[1] NOTING the facts pertaining this matter as established by the superior courts below; that the Standard Chartered Merchant Bank Limited of London (SCMB) advanced 1,300,000 Deutschemarks and 1,050,000 Swiss Francs to the 1st applicant vide a Euro-currency loan dated 22nd March 1982; that the 1st applicant executed a debenture dated 5th April 1982 in favour of the 1st respondent who was its guarantor for the said loan; that on 7th October 1986, the 1st applicant and 1st respondent ‘localized’ the Euro-currency loan to Kshs.9,000,000/= through a facility letter; that the 1st respondent advanced the localized loan to the 1st applicant who in turn offset its dues to SCMB; that the 1st applicant defaulted in repaying this loan and the 1st respondent sought to recover Kshs.19,024,522.05/= from the 1st applicant by appointing the 2nd respondent as receiver and manager over the 1st applicant’s assets; and
[2] FURTHER NOTING that at the hearings before the superior courts b…