Interpleader Proceedings

1. FIRM 25 CLASS B
CIVIL LITIGATION
INTERPLEADER APPLICATIONS
9TH
MAY, 2016

2. STATEMENT OF FACTS
XYZ Car Dealers Ltd deal in motor vehicle. Mr. Stanley Omwoyo has dealt with the dealers for
seven years now.
On 2nd February 2013, he goes to the dealers and obtains a vehicle, Toyota Land Cruiser
Registration No. KCD 923 X under a hire purchase agreement. The vehicle is valued at Kshs.
15,000,000. Due to their long and friendly business relationship, he manages to persuade the
dealer to hand over the log book to him for unclear reasons.
Once he obtains the log book, he rushes to ABC bank, Embu and obtains a loan of Kshs.
5,000,000 and registers a Chattels Mortgage against the vehicle. This is fairly easy for him as the
vehicle was registered in the name of “ Stanley Omwoyo Steve” who happens to be the
managing Director of the Dealer. Mr Omwoyo merely swore an affidavit indicating that he was
the bearer of that name.
He successfully clears the loan repayment and the bank is on the verge of discharging the
log book.
Just before it does, XYZ Dealers Ltd gets wind of the loan that Mr. Omwoyo obtained
under security of their vehicle. He has defaulted in paying the last instalment. The dealers write
to the bank notifying the bank of the fraud and demanding that the log book be released to
themselves as the rightful owners. They threaten to sue the bank for conversion if it releases the
documents to Mr. Omwoyo.
ABC Bank is caught up in a dilemma and approaches court by interpleader proceedings
seeking to have the court determine the rightful owner of the vehicle.

3. REPUBLIC OF KENYA
IN THE CHIEF MAGISTRATE’S COURT AT EMBU
CIVIL SUIT NO. OF 2016
ABC BANK LIMITED……………………………………....…INTERPLEADER APPLICANT
-VERSUS-
STANLEY OMWOYO…………………………...........................…....……. 1ST RESPONDENT
XYZ CAR DEALERS LIMITED.....................................................................2ND RESPONDENT
ORIGINATING SUMMONS
(Under Order 34 Rules 1, 2 , 5 and 7 and all enabling provisions of the Law)
Let Stanley Omwoyo of P.O Box 2345, Embu and XYZ Car Dealers Ltd of P.O Box 907,
Nairobi within ………… days after service of this summons on him, inclusive of the day of
such service, cause an appearance to be entered for them to this summons, which is issued upon
the Application of ABC Bank Ltd Of P.O Box 1315, Embu for orders that:
1. THAT the court determines the true ownership of the vehicle Toyota Land Cruiser
Registration Number KCD 923X (hereinafter “the vehicle”).
2. THAT the Applicant be allowed to discharge the chattels mortgage and release the
vehicle to the court or as the court may direct.
3. THAT costs of this application be provided for.
WHICH APPLICATION is supported by the annexed affidavit of ANITA MARY on the
following grounds and other grounds to be adduced at the hearing hereof: -
(a) THAT both the 1st and 2nd Respondents claim legitimate title over the vehicle.
(b) That the Applicant is in possession of the log book to the vehicle by dint of a loan
secured in favour of the 1st Respondent.
(c) That the 2nd Respondent has demanded that the log book be released to them as the lawful
owners.
(d) THAT the loan has already been satisfactorily repaid and the Applicant intends to
discharge the chattels mortgage and release the logbook but only to the legitimate owners
in the interest of justice.
(e) THAT the Applicant has no interest in the vehicle.

4. (f) THAT there is no collusion between the Applicant and any of the Respondents in filing
this Application.
(g) THAT the Applicant is willing to transfer the log book to the court or deal with it in any
manner as this court directs.
DATED at EMBU this day of 2016.
FIRMTWENTYFIVE & COMPANY
ADVOCATES FOR THE APPLICANT
DRAWN AND FILED BY:-
FIRMTWENTYFIVE & COMPANY
ADVOCATES,
HAZINA TOWERS (5TH FLOOR),
MONROVIA STREET,
P.O.BOX 42324,
NAIROBI.
TO BE SERVED UPON:
1. STANLEY OMWOYO,
P.O BOX 2345,
EMBU.
2. XYZ CAR DEALERS LTD,
P. O. BOX 907,
NAIROBI.
NOTE :
The Respondents may appear thereto by entering appearance either personally or by
advocate at the Court in which this summons is filed.
If any party serveddoes not appear at the time and place above mentioned such orders
will be made and proceedings taken as the court may think just and expedient.

5. REPUBLIC OF KENYA
IN THE CHIEF MAGISTRATE’S COURT AT EMBU
MISCELLANEOUS CIVIL SUIT NO. OF 2016
ABC BANK LIMITED……………………………………...…INTERPLEADER/ APPLICANT
-VERSUS-
STANLEY OMWOYO…………………………...........................…....……. 1ST RESPONDENT
XYZ CAR DEALERS LIMITED.....................................................................2ND RESPONDENT
SUPPORTING AFFIDAVIT
I, ANITA MARY of Post Office Box Number 1315, Embu in the Republic of Kenya make oath
and state as follows: -
1. THAT I am an adult of sound mind and the Legal Officer of the Applicant bank duly
authorised by the Applicant to depose in this affidavit and I am conversant with the
matter herein.
2. THAT on 13th April, 2015, the Applicant advanced a loan of Kshs. 5,000,000/= to the 1st
Respondent and registered a chattels mortgage upon Toyota Land Cruiser registration No.
KCD 923 X and has since had possession of the log book for the vehicle in the name of “
Stanley Omwoyo Steve”. Annexed and marked “ABC 1” is a copy of the chattels
mortgage.
3. THAT the 1st Respondent has successfully completed the loan repayments upon which
the bank wishes to discharge the chattels mortgage.
4. THAT the Applicant has received a demand notice from the 2nd Respondent demanding
that the log book be released to them. Annexed herein and marked “ABC 2” is a copy of
the demand letter.
5. THAT the 2nd Respondent claims that “Stanley Omwoyo Steve” is its managing director
and that the 1st Respondent fraudulently acquired the log book from them.
6. THAT the Applicant is at crossroads as to whom to release the log book to and thereby
seeks the intervention of this Honourable Court.
7. THAT the Applicant has no interest whatsoever in the vehicle.
8. THAT there is no collusion between the Applicant and any of the Respondents in filing
this Application.
9. THAT none of the parties herein will be prejudiced if this Application is granted.

6. 10. THAT the Applicant is willing to transfer the log book to the court or deal with it in any
manner as this court directs.
11. THAT what is stated hereinabove is true to the best of my knowledge, information and
belief.
SWORN at EMBU by the said )
ANITA MARY )
this day of 2016. )
………………………………………………………………
) DEPONENT
)
)
)
)
BEFORE ME )
)
)
)
COMMISSIONER FOR OATHS )
DRAWN AND FILED BY:-
FIRMTWENTYFIVE & COMPANY
ADVOCATES,
HAZINA TOWERS (5TH FLOOR),
MONROVIA STREET,
P.O.BOX 42324,
NAIROBI.

7. REPUBLIC OF KENYA
IN THECHIEF MAGISTRATE’S COURT AT EMBU
CIVIL SUIT NO. 59 OF 2016
ABC BANK……………………...…..............................2ND DEFENDANT/APPLICANT
-VS-
XYZ CAR DEALERS LTD……………………………..PLAINTIFF/1ST RESPONDENT
OMWOYO STANLEY…………………………...1ST DEFENDANT/2ND RESPONDENT
CHAMBER SUMMONS
(Under Section 58 of the Civil Procedure Act, Order 34 Rules (1), (2), (5) and (7) of the
Civil Procedure Rules, 2010, Section 3A of the Civil Procedure Act and all other enabling
provisions of law)
LET ALL PARTIES concerned attend to the Honourable Magistrate in the chambers on the ………day
of ………….....2016 at 9.00 o’clock in the fore/afternoon or soon thereafter for hearing of the counsel for
the applicant for ORDERS:-
1. That the Applicant be admitted to the ongoing proceedings as an Interpleader.
2. That the Applicant be allowed to discharge the chattels mortgage and release the vehicle to
the court or as the court may direct.
3. That the costs of this Application be in the cause.
WHICH APPLICATION is based on the following grounds : -
i. That the Applicant and the 1st Respondent entered into a loan agreement on the 13th day
of April 2015.
ii. That the 1st Respondent charged the Motor Vehicle to the Applicant as security for that
loan.
iii. That the 1st Respondent has since completely serviced that loan thereby prompting the
Applicant to want to discharge the chattels mortgage.
iv. That the Applicant is aware that the ownership of the motor vehicle is in contention
before this court and is thus confused as to who is the rightful owner.
v. That the Applicant claims no interest in the subject matter in dispute.

8. vi. That the Applicant is willing to transfer the motor vehicle into court or to dispose of it
as the court may direct.
vii. It is in the interest of justice that this application be allowed.
Which Application is further supported by the affidavit of Anita Mary and any other grounds
that may be adduced at trial .
Dated at Embu this…………day of………………………........................… ..…..2016
FIRMTWENTYFIVE& COMPANY
ADVOCATES FOR THE APPLICANT
Drawn & Filed By: -
FIRMTWENTYFIVE& COMPANY,
ADVOCATES,
HAZINA TOWERS (5TH FLOOR),
MONROVIA STREET,
P.O Box 42324,
NAIROBI.
To be served upon: -
1. M/S OMARI & COMPANY,
ADVOCATES,
P.O BOX 3531-40100,
NAIROBI.
2. STANLEY OMWOYO,
P.O BOX 2345,
EMBU.
If any party served with this application does not attend at the time and place above mentioned,
proceeding shall be taken and such orders made as the court may deem just and expedient.

9. REPUBLIC OF KENYA
IN THECHIEF MAGISTRATE’S COURT AT EMBU
CIVIL SUIT NO. 59 OF 2016
ABC BANK……………………...…..............................2ND DEFENDANT/APPLICANT
-VS-
XYZ CAR DEALERS LTD……………………………..PLAINTIFF/1ST RESPONDENT
OMWOYO STANLEY…………………………...1ST DEFENDANT/2ND RESPONDENT
SUPPORTING AFFIDAVIT
I, Anita Mary of P.O Box 1315, Embu within the Republic of Kenya do hereby make oath and
state as follows: -
1. THAT I am an adult of sound mind and disposition and the Legal Officer for the Applicant
herein hence competent to swear this affidavit.
2. THAT the Applicant entered into a loan agreement with the 1st Respondent on the 13th day
of April 2015.
3. THAT pursuant to that loan agreement, the 1st Respondent charged the motor vehicle
(subject of these proceedings) to the Applicant. SEE COPY OF CHATTELS
MORTGAGE ATTACHED AND MARKED AS ABC 1
4. THAT the 1st Respondent has since completely serviced that loan and the interest that
accrued thereon.
5. THAT before the Applicant could discharge the Chattels Mortgage, the 2nd Respondent
served it with a demand notice by which the 2nd Respondent claims ownership of the Motor
Vehicle and stopping discharge and release of the same to the 2nd Respondent. SEE COPY
OF DEMAND NOTICE ATTACHED AND MARKED AS ABC 2.
6. THAT the 2nd Respondent claims that “Stanley Omwoyo Steve” is its managing director
and that the 1st Respondent fraudulently acquired the log book from them.
7. THAT the Applicant is desirous to discharge the Chattels Mortgage and release the motor
vehicle to the rightful owner.
8. THAT the Applicant has no interest in the motor vehicle.

10. 9. THAT the Applicant has not colluded with either of the Respondents herein, to make this
Application.
10. THAT none of the parties herein will be prejudiced if this Application is granted.
11. THAT the Applicant is willing to deposit the log book into this court or to dispose of it as
directed by this court.
12. THAT it is in the interest of justice that the orders sought herein be granted.
13. THAT consequently, I swear this affidavit in support of my application that this Application
be allowed.
14. THAT all that is deponed to herein is true to the best of my knowledge, information and
belief.
SWORN at EMBU by the said )
ANITA MARY )
this day of 2016. )
………………………………………………………………
) DEPONENT
)
)
)
)
BEFORE ME )
)
)
)
COMMISSIONER FOR OATHS )
Drawn & Filed By:-
FIRMTWENTYFIVE & COMPANY,
ADVOCATES,
HAZINA TOWERS (5TH FLOOR),
MONROVIA STREET,
P.O Box 42324,
NAIROBI.