[2023] KECPT 791 (KLR)
The Tribunal held that the issue of whether interest should be charged on the claimant's loan account is a substantive matter that requires evidence and should be determined at the main hearing of the case. Granting the order sought at the interlocutory stage would amount to prematurely deciding a core issue in...
Source-derived case information.
- Citation
- [2023] KECPT 791 (KLR)
- Parties
- Applicant: Freshpro Dairy Limited; Respondent: GDC Savings and Credit Cooperative Society
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Cause 225 (E287) of 2022
- Procedural Posture
- Miscellaneous Application / Ruling on Interlocutory Application
- Outcome
- application dismissed
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Loan Interest Dispute, Interlocutory Injunctions, Costs of Application
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Freshpro Dairy Limited
Applicant
GDC Savings and Credit Cooperative Society
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Interlocutory Application
Legal Issues
- 1 Whether the Tribunal should restrain the respondent from charging interest on the claimant's loan account pending determination of the main claim.
- 2 Whether the issue of interest can be determined at the interlocutory stage.
Ratio Decidendi
The Tribunal held that the issue of whether interest should be charged on the claimant's loan account is a substantive matter that requires evidence and should be determined at the main hearing of the case. Granting the order sought at the interlocutory stage would amount to prematurely deciding a core issue in dispute. Therefore, the application to restrain the respondent from charging interest was found to lack merit and was dismissed with costs in the cause.
Court Disposition
application dismissed
Orders
- The claimant's Notice of Motion Application dated 19th April, 2022 is dismissed with costs in the cause.
Full Case Text
Judgment text and source record
27 paragraphs
Freshpro Dairy Limited v GDC Savings and Credit Cooperative Society (Cause 225 (E287) of 2022) [2023] KECPT 791 (KLR) (31 August 2023) (Ruling)
Neutral citation: [2023] KECPT 791 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Cause 225 (E287) of 2022
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
August 31, 2023
Between
Freshpro dairy Limited
Claimant
and
GDC Savings and Credit Cooperative Society
Respondent
Ruling
1. The Claimant’s Notice of Motion Application dated 19th April, 2022, filed on 21st April, 2022.
2. In the application, the claimant seeks for orders: 1. Spent
2. Spent
3. That an order be and is hereby issued restraining the Respondent from charging interest on Claimant’s loan account from 23rd June, 2021 pending the hearing and determination of the claim.
4. That costs of their Application be provided.
3. The Application is based on the grounds on the face thereof and on the Supporting Affidavit of Mkamba Musa Hamisi, a Director of the Claimant, sworn on 20th April, 2022 and the further Affidavit in opposition the Application, the Respondent on 5. 9.2022 filed a Replying Affidavit sworn by James Mbugua Njau on 2nd September, 2022.
4. The Respondent further on 31st March 2022, filed written submissions dated the same date.
5. We note that the Respondent submitted on the Application herein and also on the Notice of Preliminary Objection dated 26th April, 2022.
6. From the proceedings of the Tribunal recorded on 12. 7.2022 and 1. 11. 2022, we find it is clear that the Notice of Preliminary Objection shall be canvassed with the hearing of the main case and thus the only matter presently before us for determination is the Application dated 19. 4.2022.
Determination 7. We have considered the Claimant’s Application herein, and the supporting and further Affidavits in support thereto.
8. We have also considered the Respondent’s Replying Affidavit and the written submissions, and find that in asking us to determine the issue of interest in respect to a loan account at this stage of the suit, the Applicant is urging us to isolate and delve into a matter of evidence which is a matter for the main hearing of the case wherein it shall be canvassed together with other issues on merit.
9. We therefore find that the Claimant’s Notice of Motion Application dated 19th April, 2022 lacks merit and is hereby dismissed with costs in the cause.
RULING SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF AUGUST, 2023. HON. BEATRICE KIMEMIACHAIRPERSONHON. J. MWATSAMADEPUTY CHAIRPERSONHON. BEATRICE SAWEMEMBERHON. FRIDAH LOTUIYAMEMBERHON. PHILIP GICHUKIMEMBERHON. MICHAEL CHESIKAWMEMBERHON. PAUL AOLMEMBER