JUDGMENT OF THE COURT
The facts giving rise to this appeal are largely not in dispute. They are as follows. Augustine Riwa Obiero, the respondent (hereinafter called “the plaintiff”), was the registered owner of Land Reference Number 209/6252 situated in Eastleigh, Nairobi, together with buildings and other developments thereon (hereinafter referred to as “the suit property”). On or about 13th September, 1983, the plaintiff acted as a guarantor in respect of financial facilities and banking accommodation granted by the first appellant, Thabiti Finance Company Limited, to one Mathews Ouma Mwango and the plaintiff and charged the suit property as security for the loan.
Mwango seriously fell into arrears with the loan repayments and though the plaintiff was able to liquidate the principal sum, the plaintiff was unable to service the accrued interest. Consequently, the first appellant advertised the suit property for sale by public auction. However, a further negotiation between the plainti…