JUDGMENT OF THE COURT
On 12th June 2014, the appellant and the 1st respondent entered into a contract for the supply of what is described in the parties’ pleadings as Mhub 846 units “Mhubs”. In layman terms, that technical term is used by the parties to mean tracking devices used in fleet or vehicle management. To guarantee payment to the 1st respondent upon supply of the devices, the appellant arranged and opened a letter of credit dated 27th August 2014 with the 2nd respondent as the issuing bank for a sum of Kshs.4,200,000/-. Following receipt of the relevant documents from Allied Irish Bank, the advising bank, the 2nd respondent duly acknowledged receipt of the said documents which in effect meant authorization by the 1st respondent that the 2nd respondent was obligated to pay the supplier of the devices, the appellant, upon receipt of the relevant documents and would pay the amount guaranteed under the letter of credit on its maturity date being, 28th February, 2015.
The appellant …