[2023] KEELRC 866 (KLR)
The court found that there was no settlement by consent; the respondent unilaterally remitted only the principal amount, leaving interest unpaid. The interest was not a discretionary claim by the claimant but was computed by the Staff Benefits Scheme in accordance with its rules. The court held that both interest...
Source-derived case information.
- Citation
- [2023] KEELRC 866 (KLR)
- Parties
- Applicant: John Nyangaresi Gisoni; Respondent: Postal Corporation of Kenya
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause E335 of 2021
- Procedural Posture
- Employment Cause / Ruling on Costs and Interest After Partial Settlement
- Outcome
- Claim for interest and costs allowed.
- Judges
- NJ Abuodha
- Legal Topics
- Retirement Benefits, Non Remittance of Contributions, Interest on Arrears, Costs Award
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
John Nyangaresi Gisoni
Applicant
Postal Corporation of Kenya
Respondent
Procedural Posture
Employment Cause / Ruling on Costs and Interest After Partial Settlement
Legal Issues
- 1 Whether the claimant is entitled to interest on the unremitted retirement benefits contributions.
- 2 Whether the claimant is entitled to costs despite partial settlement by the respondent.
Ratio Decidendi
The court found that there was no settlement by consent; the respondent unilaterally remitted only the principal amount, leaving interest unpaid. The interest was not a discretionary claim by the claimant but was computed by the Staff Benefits Scheme in accordance with its rules. The court held that both interest and costs are payable, as the claimant was compelled to file suit to recover his entitlements, and the respondent's partial payment did not extinguish liability for interest or costs. The court awarded interest as initially computed and costs as agreed between the parties.
Court Disposition
Claim for interest and costs allowed.
Orders
- Respondent to pay interest of Kshs 105,843 to the claimant.
- Respondent to pay costs of Kshs 96,540 to the claimant.
Full Case Text
Judgment text and source record
26 paragraphs
Gisoni v Postal Corporation of Kenya (Cause E335 of 2021) [2023] KEELRC 866 (KLR) (14 April 2023) (Ruling)
Neutral citation: [2023] KEELRC 866 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Cause E335 of 2021
NJ Abuodha, J
April 14, 2023
Between
John Nyangaresi Gisoni
Claimant
and
Postal Corporation of Kenya
Respondent
Ruling
1. It was not in dispute that the claimant instituted action against the respondent for recovery of Kshs 632,428/= owed to him due to failure by the Respondent to remit funds to Postal Corporation of Kenya Staff Retirement Benefits Scheme. The Respondent settled the principal amount of Kshs 528,341. 40. However the issue of costs and interest remained unsettled hence the need for this ruling.
2. Ms Jane Miyogo for the Respondent submitted in the main that the Claimant did not prosecute the case to its conclusion hence it would be unfair for costs and interests to be awarded no their favour. According to Counsel, the parties herein agreed to settle the matter hence it would not be fair to order costs.
3. Counsel for the Claimant, Mr Moriasi on the other hand submitted that the Claimant instructed his advocate to issue a demand letter, there was no response. A claim was subsequently filed for the sum of Kshs 632,428/=.
4. Earlier, according to Counsel, the Claimant was supplied by the Respondent’s Staff Benefit Scheme with a statement of contribution showing the arrears not remitted to it by the Respondent dating back to 2015 up to June 2020 amounting to Kshs 526,584/= and interest of Kshs 105,843/= at an interest rate of 2017 making it a total of Kshs 632,428/=.
5. Counsel further stated that the Respondent promised to settle the matter out of Court and that on December 3, 2021, they informed that advocates that they had forwarded a cheque of Kshs 528,341/= to the scheme for payment to the Claimant which was received on account. The balance of Kshs 105,843/= being interest remained unpaid.
6. According to Counsel, on or about November 10, 2022, the parties had a without prejudice meeting to discuss the interest and costs of the suit. The parties agreed at Kshs 238,107/= and the only pending issue was approval of the Board.
7. As was held in the case Republic v Rosemary Wairimu Munene Judicial Review No 6 of 2014 relied on by the Counsel for the Respondent, costs follow the event. The concept however ought not be used to penalize the losing party, rather it is for compensating the successful party for the trouble taken in prosecuting or defending the case.
8. Counsel for the Respondent was right when she submitted that the Court can waive costs in certain cases such as litigation involving public interest or where parties settle a matter by consent.
9. In this particular case there was no settlement by consent. The Respondent simply sent the arrears of the Claimant’s benefits unremitted less interest. The interest was not an idea by the Claimant but by the Staff Benefits Scheme which must have been in accordance with its rules where there are arrears in contributions to the scheme.
10. The Court therefore is of the view that costs and interest are payable as initially computed at Kshs 105,843/= and costs as agreed at Kshs 96,540/=.
11. It is so ordered.
DATED, SIGNED AND DELIVERED VIRTUALLY AT NAIROBI ON THIS 14TH DAY OF APRIL 2023ABUODHA JORUM NELSONJUDGEIn the presence of:-Moriasi for the ClaimantBosire for the Respondent