[2024] KECPT 969 (KLR)
The Tribunal found that the respondent admitted to owing the claimant the sum of Kshs. 78,250/= as deposits. However, the respondent demonstrated that it faced liquidity challenges and had adopted a refund schedule through an AGM resolution to ensure the Sacco's financial stability. The Tribunal accepted that...
Source-derived case information.
- Citation
- [2024] KECPT 969 (KLR)
- Parties
- Applicant: Elphas Winjira Ingutia; Respondent: Metropolitan National Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E046 (34) of 2022
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for claimant, refund to be paid as scheduled
- Judges
- J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Deposits, Refund Schedule, Withdrawal of Membership
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Elphas Winjira Ingutia
Applicant
Metropolitan National Society Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to immediate refund of his deposits upon withdrawal of membership.
- 2 Whether the respondent's refund schedule, as per the AGM resolution, is binding on the claimant.
Ratio Decidendi
The Tribunal found that the respondent admitted to owing the claimant the sum of Kshs. 78,250/= as deposits. However, the respondent demonstrated that it faced liquidity challenges and had adopted a refund schedule through an AGM resolution to ensure the Sacco's financial stability. The Tribunal accepted that immediate refund to all withdrawing members could jeopardize the Sacco's operations. Therefore, it was reasonable and lawful for the respondent to refund the claimant as per the established schedule, specifically on 23rd May, 2024. The Tribunal entered judgment in favour of the claimant for the sum of Kshs. 78,250/=, to be paid on the scheduled date, together with costs and interest.
Court Disposition
judgment for claimant, refund to be paid as scheduled
Orders
- The respondent shall pay the claimant Kshs. 78,250/= on 23rd May, 2024.
- The respondent shall pay costs and interest to the claimant.
Full Case Text
Judgment text and source record
20 paragraphs
Ingutia v Metropolitan National Society Limited (Tribunal Case E046 (34) of 2022) [2024] KECPT 969 (KLR) (30 May 2024) (Judgment)
Neutral citation: [2024] KECPT 969 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case E046 (34) of 2022
J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
May 30, 2024
Between
Elphas Winjira Ingutia
Claimant
and
Metropolitan National Society Limited
Respondent
(Coram: Hon. J. Mwatsama- Deputy chairperson, Hon. B. Sawe- Member, Hon. F. Lotuiya- Member, Hon.P. Gichuki- Member, Hon. M. Chesikaw- Member and Hon. P. Aol- Member.)
Judgment
1. The Claimant was a member of the Respondent Sacco member number 102150 and on 2nd September, 2021 he made an Application to withdraw his membership. As at the time of withdrawing his membership, his deposits stood at Kshs. 78,250/=.
2. The Respondent did not refund his deposits and on 7th February, 2022 he filed this claim to recover his deposits.On 7th March, 2022, the Respondent filed his Statement of Defence which largely admitted to owing the Claimant Kshs. 78,250/= but also indicated the following:i.That the Claimant did not withdraw his membership in accordance with the Respondent’s Sacco by-laws.ii.That the Respondent’s Annual General Meeting had made a resolution where members resolved and agreed to schedule refunds on a first come first serve basis and the claimant as per the refunds roaster will be refunded on 23rd May, 2024, the sum of Kshs. 78,250/=
3. On 15th September, 2023 this Tribunal made orders for the case to be canvassed through written submissions and the same having been complied with, the only question remaining for determination is as to whether the claimant should wait and be refunded as per the refunds roaster.
Should The Claimant Wait To Be Refunded As Per The Refunds Roaster 4. The Respondent has admitted to having liquidity challenges making it impossible to refund all members withdrawing at once as such an action will collapse their Sacco.To facilitate a viable means through which members withdrawing can be refunded their deposits in a manner that does not collapse the Sacco, they have come up with a schedule and that schedule states to the effect that the Claimant is to be refunded on 23rd May, 2024. We have considered the evidence adduced and the circumstances of both parties and hereby order the Respondent to pay the Claimant the sum of Kshs. 78,250/= on 23rd May, 2024. Judgment entered in favour of Claimant against Respondent for Kshs. 78,250/= plus costs and interest.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 30TH DAY OF MAY, 2024. Hon. J. Mwatsama Deputy Chairperson Signed 30. 5.2024Hon. Beatrice Sawe Member Signed 30. 5.2024Hon. Fridah Lotuiya Member Signed 30. 5.2024Hon. Philip Gichuki Member Signed 30. 5.2024Hon. Michael Chesikaw Member Signed 30. 5.2024Hon. Paul Aol Member Signed 30. 5.2024Tribunal Clerk JonahNo appearance by parties.Judgment delivered in absence of parties.Hon. J. Mwatsama Deputy Chairperson Signed 30. 5.2024