I & M Bank Limited v Buzeki Enterprises Limited [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Commercial & Tax Division
Category
Civil
Judge(s)
W. A. Okwany
Judgment Date
October 08, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key insights from the I & M Bank Limited v Buzeki Enterprises Limited [2020] eKLR case summary. Understand its implications for banking law and business contracts.

Case Brief: I & M Bank Limited v Buzeki Enterprises Limited [2020] eKLR

1. Case Information:
- Name of the Case: I & M Bank Limited v. Buzeki Enterprises Limited
- Case Number: HCCC NO. E375 OF 2019
- Court: High Court of Kenya, Commercial and Tax Division
- Date Delivered: October 8, 2020
- Category of Law: Civil
- Judge(s): W. A. Okwany
- Country: Kenya

2. Questions Presented:
The central legal issues presented to the court include:
1. Whether the plaintiff, I & M Bank Limited, has made a case for the striking out of the defendant's statement of defence.
2. Whether the court should enter judgment for the plaintiff for the amount claimed based on the promissory note.

3. Facts of the Case:
The plaintiff, I & M Bank Limited, sought judgment against the defendant, Buzeki Enterprises Limited, for Kshs 864,758,278 and interest, based on a promissory note dated August 2, 2016, which the defendant allegedly failed to honor. The defendant denied the claim, asserting it was not a party to the agreement between the plaintiff and RT (East Africa) Limited. The plaintiff subsequently obtained an interlocutory judgment against the defendant, which was later set aside by consent. The plaintiff then filed an application to strike out the defendant's defence and enter judgment in its favor.

4. Procedural History:
The procedural history began with the filing of the plaint on October 18, 2019, followed by the defendant's statement of defence on November 22, 2019, denying the claim. The plaintiff sought interlocutory judgment, which was granted but later set aside. The plaintiff's application dated December 16, 2019, sought to strike out the defence and enter judgment, which the defendant opposed through grounds of opposition and a replying affidavit.

5. Analysis:
Rules:
The court considered the principles governing the striking out of a defence, emphasizing that such a drastic measure should be taken sparingly and only in clear cases where the defence is a sham or raises no triable issues, as established in *Saudi Arabia Airlines Corporation v. Premium Petroleum Company Limited*.

Case Law:
The court referenced the *DT Dobie* case, which underscores the importance of allowing cases to be heard on their merits rather than terminating them prematurely. The *Patel v. E.A. Cargo Handling Services Ltd.* case was also cited, which defines a triable issue as one that raises a prima facie defence warranting a trial.

Application:
Upon reviewing the defendant's defence, the court found that it raised bona fide triable issues, particularly concerning the existence of ongoing proceedings related to the same promissory note in another case. This indicated that the plaintiff's application to strike out the defence was not merited.

6. Conclusion:
The court ruled against the plaintiff's application to strike out the defendant's defence, allowing the case to proceed to trial. The decision emphasizes the importance of ensuring that parties have the opportunity to present their cases and that the judicial process is not circumvented.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya dismissed the plaintiff's application to strike out the defence of Buzeki Enterprises Limited, allowing the defence to stand and the case to proceed to trial. This ruling highlights the court's commitment to substantive justice and the need for all parties to have the opportunity to fully present their cases in court.

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