TRUST AGENCIES LIMITED & 2 OTHERS
V.
CHIMNLAL K.N. SHAH & 3 OTHERS

JUDGMENT OF THE COURT

This is an appeal from the ruling of the superior court, Mbaluto, J. dated 10^th December, 2002 in High Court Civil Number 1387 of 2001.

The background facts are well set out in the plaint and the intended defence. The respondents at the material time held bank accounts in the bank then known as Trust Bank Ltd which accounts held substantial money deposits. Upon the request of the 1^st appellant, the respondents jointly and/or severally agreed to lend to the 1^st appellant part of the said deposits by assignment to the extent of Kshs.89,022,637. In order to perfect the arrangement the respondents and the 1^st and 2^nd appellants jointly and/or severally entered into an agreement dated 20^th June, 2000 wherein it was agreed inter-alia that the sum repayable by the 1^st appellant by way of scheduled instalments would be Kshs.105,848,960 inclusive of agreed interest commencing 31^st July 2000 and ending 31^st December 2002. The second appellant guaranteed in writing the said r…