JUDGMENT OF THE COURT
This is an interlocutory appeal from the ruling and order of the High Court (Apondi, J.) dated 10th March 2011 by which the learned judge issued a permanent injunction restraining Total Kenya Limited (Total) from calling in a guarantee of Kshs 3,500,000.00 given by Co-operative Bank of Kenya Limited (the Bank) on behalf of David Njane t/a Agrwings Twin Service Station (Njane) and Twin Buffalos Safaris Limited (Buffalos Safaris). The learned judge also issued a further permanent injunction restraining the Bank from paying to Total the said amount or any other amount, upon demand.
The background to the appeal is that on or about 31st July 2007 Total and Njane entered into a dealership agreement under which Total appointed Njane a distributor of its products from Total’s petrol station on LR No 209/6409, Hurligham, Nairobi. Among the terms of the agreement were that Njane would, throughout the period of the agreement, furnish Total with a working capital of Kshs 12,50…