N.U.R.T.W. & 60 ORS. v. FIRST CONTINENTAL INSURANCE CO. LTD.

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Facts:

The parties entered into an agreement sometimes in 1993, for the respondent to finance the payment of 20% down payment for buses allocated to the 2nd – 61st appellants and guaranteed by the 1st appellant. The respondent was also to provide three years comprehensive insurance cover for each of the buses under the agreement. The appellants took delivery of the buses, commenced payment for them as agreed, but defaulted on their obligation to make regular subsequent payments to the respondent despite repeated demands.
On that basis the respondent instituted an action seeking to enforce the contract of guarantee against the 1st appellant. Some years later while the action was pending it also applied to the lower Court to join the 2nd – 61st appellants as parties to the action which was then granted. The appellants filed their defence. In its final decision, the lower Court found the appellants liable and gave judgment in favour of the respondent. Dissatisfied with the decision of the lower Court the appellants appealed to the Court of Appeal.

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