RULING
This appeal arises from two consolidated suits. The first suit in time is Nairobi High Court Civil Case No 2245 of 1991. Kenya Commercial Bank Ltd, and Kenya Commercial Finance Ltd, the respondents, were the plaintiffs with Stephen Mugo Mutothori and Machithi Trout Farm Limited, the appellants, as the defendants. The second suit is Nairobi High Court Civil Case No 2382 of 1991, in which Machithi Trout Farm Limited is the plaintiff with the respondents herein as the defendants. Both suits concern a parcel of land known as LR No 3452/1 (IR 4123), Nyeri, which is registered in the name of Machithi Trout Farm Limited, which as appropriate, we will refer to as Machithi.
The aforesaid property was given as security by Machithi, to secure repayment by it of a loan it had received from the respondents. Stephen Mugo Mutothori and one Priscilla Wangari Mugo, as Directors of Machithi, executed a legal charge over the property in favour of the respondents. Following Machithi's default in the…