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NATIONAL BANK OF KENYA LIMITED
V.
DEVJI BHIMJI SANGHANI AND JADVA BHIMJI SANGANI TRADING UNDER THE NAME AND STYLE OF SANGHANI BUILDERS

(1995) JELR 104461 (CA)

Court of Appeal 15 Nov 1995 Kenya
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Case Details

Suit Number:civ app 13 of 94[1]
Judges:Philip Kiptoo Tunoi JA
Location:Nairobi
Other Citations:National Bank of Kenya Limited v. Devji Bhimji Sanghani & another [1995]eKLR

JUDGMENT OF TUNOI, J.A.

The facts out of which this appeal arises are fully set out in the judgment of Kwach, J.A. and I need not repeat them.

However, I respectfully disagree with the conclusions reached by him.

The principal ground in this appeal is that the learned judge erred in finding that the two letters of 5th July, 1978 and 20th July, 1978, with or without the addition of the alleged assurance of Mr. Nyammo, were guarantees given by the appellant to the respondents for good consideration, and that he ought to have found them no more than letters passing between two banks, without intention to bind the bank of one customer to pay under a guarantee to the customer of the other bank.

The respondents had 28 years' working experience. They had over a course of time completed many complex projects.

Building contracts as well as guarantees and assurances were common play to them. Before executing the contract they informed Suresh Kapila, the architect for the project for construction of …

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