Diamond Trust Bank Kenya Limited v Invesco Assurance Company Limited & another [2020] eKLR Case Summary

Court
High Court of Kenya at Mombasa
Category
Civil
Judge(s)
P.J.O. Otieno
Judgment Date
October 23, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3

Case Brief: Diamond Trust Bank Kenya Limited v Invesco Assurance Company Limited & another [2020] eKLR


1. Case Information:
- Name of the Case: Diamond Trust Bank Kenya Limited v. Invesco Assurance Company Limited & Francis Ochieng Koba
- Case Number: Civil Appeal No. 55 of 2020 (Consolidated with Civil Appeal 56 of 2020)
- Court: High Court of Kenya at Mombasa
- Date Delivered: October 23, 2020
- Category of Law: Civil
- Judge(s): P.J.O. Otieno
- Country: Kenya

2. Questions Presented:
The court must resolve the following central legal issues:
1. Who bears the obligation to furnish proper account details belonging to the judgment debtor in garnishee proceedings?
2. Did the trial court err in relying on an affidavit from the judgment debtor regarding the existence of a specific account number?

3. Facts of the Case:
The appellant, Diamond Trust Bank Kenya Limited, was involved in garnishee proceedings initiated by the 2nd respondent, Francis Ochieng Koba, against the 1st respondent, Invesco Assurance Company Limited. The 2nd respondent sought a garnishee order absolute for a judgment sum of Kshs. 207,503.60 and Kshs. 3,771,970.97 from the appellant. The appellant contended that it did not hold any funds for the 1st respondent and disputed the existence of account number 01050919221, which the 2nd respondent claimed was operated by the judgment debtor. The trial court ruled in favor of the 2nd respondent, leading to this appeal.

4. Procedural History:
The case began with the 2nd respondent applying for a garnishee order absolute in the trial court. The appellant opposed the application, asserting that the account in question did not exist. The trial court, however, issued a garnishee order absolute on May 8, 2020, prompting the appellant to appeal. The appeal was consolidated with another case, and both parties submitted written arguments. The appellant raised several grounds of appeal challenging the trial court's findings and decisions.

5. Analysis:
Rules:
The relevant statutes include Order 23 of the Civil Procedure Rules, which outlines the procedures for garnishee proceedings, including the obligations of the garnishee to disclose debts owed to the judgment debtor.

Case Law:
The court referenced several cases, including *Mbogo & Another v. Shah (1968) E.A* and *Selle v. Associated Motor Boat Company Ltd [1968] E.A 123*, which establish principles regarding the discretion of trial courts and the burden of proof in garnishee proceedings.

Application:
The court determined that the trial court had correctly imposed the burden on the appellant to provide evidence regarding the existence of the account. The appellant's failure to adequately address the affidavit from the judgment debtor's legal manager, which confirmed the existence of the account, was a significant factor in affirming the trial court's decision. The court found that the appellant's denial of the account's existence was insufficient and amounted to evasion.

6. Conclusion:
The court dismissed the appeal, affirming the trial court's ruling that the appellant had the obligation to disclose account details and that it had failed to do so. The decision has broader implications for the responsibilities of banks in garnishee proceedings, emphasizing the need for transparency in disclosing accounts held for judgment debtors.

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

8. Summary:
The High Court of Kenya upheld the trial court's ruling in favor of the respondents, confirming that Diamond Trust Bank had a legal obligation to disclose account information related to the judgment debtor. The decision reinforces the importance of compliance by financial institutions in garnishee proceedings, ensuring that judgment creditors can access funds owed to them. The court also emphasized the necessity of providing robust evidence in such legal disputes.

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