[2024] KECPT 910 (KLR)
The Tribunal found that the claimant had an outstanding loan with the respondent that had not been fully settled. The evidence, including the loan and share statements, confirmed the existence of the debt. The Tribunal held that contractual obligations must be performed before a party can be discharged from the...
Source-derived case information.
- Citation
- [2024] KECPT 910 (KLR)
- Parties
- Applicant: Joram Aruda Endege; Respondent: Sokoro Sacco Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 870/E966 of 2022
- Procedural Posture
- Civil Claim / Judgment
- Outcome
- claim dismissed
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Cooperative Societies, Loan Default, Member Resignation, Contractual Obligations
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Joram Aruda Endege
Applicant
Sokoro Sacco Society Limited
Respondent
Procedural Posture
Civil Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of his deposits if his outstanding loan remains unsatisfied.
Ratio Decidendi
The Tribunal found that the claimant had an outstanding loan with the respondent that had not been fully settled. The evidence, including the loan and share statements, confirmed the existence of the debt. The Tribunal held that contractual obligations must be performed before a party can be discharged from the contract, and in this context, the claimant could not resign and claim a refund of his deposits while still owing the respondent. Even if the deposits were applied to the loan, a balance would remain. Therefore, the claim for a refund was without merit and was dismissed.
Court Disposition
claim dismissed
Orders
- The Statement of Claim dated 4th November, 2022 and filed on 8th November, 2022 is dismissed.
- Parties to bear their own costs.
Full Case Text
Judgment text and source record
21 paragraphs
Endege v Sokoro Sacco Society Limited (Tribunal Case 870/E966 of 2022) [2024] KECPT 910 (KLR) (Civ) (27 June 2024) (Judgment)
Neutral citation: [2024] KECPT 910 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Civil
Tribunal Case 870/E966 of 2022
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
June 27, 2024
Between
Joram Aruda Endege
Claimant
and
Sokoro Sacco Society Limited
Respondent
Judgment
Facts Of The Case 1. The Claimant is a member of the Respondent’s Society No. 1042 and in the month of March, 2022 tendered his resignation from the society.In the Claimant’s letter dated 24th March, 2022 he gave instructions that the Respondent updates his account and refunds balances of his deposits.
2. The Respondent’s in their Statement of Defence stated categorically that they will only clear the Claimant once he clears his outstanding loan balance of Kshs. 166,100/= which he was already in default of repayment.
3. On 18th April, 2024 this Tribunal gave directions for parties to file their written submissions and the Respondent’s filed their submissions indicating among others that the Claimant was very much aware that he took a loan on 6th July, 2020 and that loan is still in arrears. That the claimant was notified when the loan fell in default and sent two reminders and he still did not settle the loan.It is also the Respondent’s position that the terms of the Loan Agreement do not allow the Claimant to resign until the loan is satisfied.
Issue For Determination Whether The Claimant is entitled to a refund of his Deposits if the loan he took Remains Unsatisfied. 4. From evidence adduced, it is clear that the Claimant took a loan of Kshs. 250,000/= on 6th July, 2020, a loan that has not been fully settled.It is also clear from both the loan and share statement filed in evidence that the Claimant still owes the Respondent.It is settled law that to discharge oneself from a contract, you also have to perform the terms you agreed to in the contract - in this particular case, the Loan Agreement.It is clear to this Tribunal from evidence availed that the Claimant is yet to fully settle the loan plus interest and even if his deposits were considered to settle the loan, there will still be some balance.
Final OrdersClaim found to be without merit.i.The Statement of Claim dated 4th November, 2022 and filed on 8th November, 2022 is dismissed.ii.Parties to bear their own costs.
JUDGMENTSIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 27TH DAY OF JUNE, 2024. Hon. B. Kimemia Chairperson Signed 27. 6.2024Hon. J. Mwatsama Deputy Chairperson Signed 27. 6.2024Hon. Beatrice Sawe Member Signed 27. 6.2024Hon. Fridah Lotuiya Member Signed 27. 6.2024Hon. Philip Gichuki Member Signed 27. 6.2024Hon. Michael Chesikaw Member Signed 27. 6.2024Hon. Paul Aol Member Signed 27. 6.2024Tribunal Clerk JonahMrs. Ndeda advocate for the RespondentOuma &Company advocate for Claimant – No appearance.Hon. J. Mwatsama Deputy Chairperson Signed 27. 6.2024