JUDGMENT OF THE COURT
The appellant, hereinafter referred to as UHDL, on January 6, 1995, instructed proceedings in the superior court against the respondents. It is alleged in the plaint that in October 1993, the second respondent Bank prevailed upon UHDL to guarantee Shs. 2.5 billion of the debts owed by the second respondents to the first respondent, hereinafter referred to as the CBK, and by a charge dated 21st October,1993 and registered on 31st December, 1993, UHDL executed a charge over its piece of land namely Plot L. R. No. 209/9514 Nairobi together with all the buildings and other improvements thereon to secure the repayment of a sum not exceeding the Shs. 2.5 billion owed by the second respondent to the CBK. UHDL states further that at the time of the creation of this security there was an agreement or understanding between UHDL and the respondents that the charge created was only a stop-gap arrangement, not to be enforced and that the second respondent would meet its debt l…