JUDGMENT OF THE COURT
The crucial issue in this appeal is whether the charge on the property of the respondent, Kwanza House Ltd., known as L.R. Nakuru Municipality Block 9/90 which we shall hereinafter, refer to as the respondent's property, could be discharged on the ground that the consideration for it namely, that the appellant would grant to Kwanza Motors Ltd. a letter of credit in the sum of Kshs.75million, had totally failed.
We will now analyse the relevant evidence on this issue that was presented in the superior court. The appellant is a well Known Bank and it is undenied, that the managing director of the respondent, Geoffrey Makana Asanyo, approached the appellant to open a letter of credit on behalf of Kwanza Motors Ltd. another company in which Asanyo and his wife were also directors, in favour of Aveling Barford, a firm in the United Kingdom who were to supply ten motor graders to Kwanza Motors Ltd. Mr. Asanyo on 14th July, 1994, wrote to the appellant applying on behalf …