[2024] KECPT 1496 (KLR)
The Tribunal found that the Claimant had proved his membership and compliance with the withdrawal procedure, supported by documentary evidence. The Respondent admitted membership but failed to substantiate its reliance on the 2022 AGM resolution, as no minutes or documentary proof were filed. The Tribunal held that...
Source-derived case information.
- Citation
- [2024] KECPT 1496 (KLR)
- Parties
- Applicant: James Karungo Kahonge; Respondent: Metropolitan Nation Sacco Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 269/E389 of 2023
- Procedural Posture
- Miscellaneous Application / Judgment
- Outcome
- judgment for the claimant
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Withdrawal, Refund of Savings, Share Capital Non Refundability, Agm Resolutions, Procedural Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
James Karungo Kahonge
Applicant
Metropolitan Nation Sacco Limited
Respondent
Procedural Posture
Miscellaneous Application / Judgment
Legal Issues
- 1 Whether the Claimant is entitled to a refund of his savings and shares from the Respondent Sacco.
- 2 Whether the 2022 Annual General Meeting resolution lawfully suspended the Claimant's right to a refund.
- 3 Whether the Claimant followed the correct procedure for withdrawal and demand for refund.
Ratio Decidendi
The Tribunal found that the Claimant had proved his membership and compliance with the withdrawal procedure, supported by documentary evidence. The Respondent admitted membership but failed to substantiate its reliance on the 2022 AGM resolution, as no minutes or documentary proof were filed. The Tribunal held that the Claimant was entitled to a refund of his savings, excluding the non-refundable share capital, and that the Respondent's defense based on the AGM resolution was unsustainable in the absence of evidence. The Tribunal therefore entered judgment in favour of the Claimant for the proven amount, with costs and interest.
Court Disposition
judgment for the claimant
Orders
- The Respondent shall pay the Claimant Kshs. 751,404 with interest at court rates from the date of filing until payment in full.
- The Respondent shall bear the costs of the claim.
Full Case Text
Judgment text and source record
24 paragraphs
Kahonge v Metropolitan Nation Sacco Limited (Tribunal Case 269/E389 of 2023) [2024] KECPT 1496 (KLR) (26 September 2024) (Judgment)
Neutral citation: [2024] KECPT 1496 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 269/E389 of 2023
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
September 26, 2024
Between
James Karungo Kahonge
Claimant
and
Metropolitan Nation Sacco Limited
Respondent
Judgment
1. The Claimant has moved this Court vide his Claim of 4/5/2023 with the following reliefs;a.A refund of savings and shares of Kshs. 773,533. 44/= together with interest till payment in full.b.Cost of this Claim.c.Interest on (a) and (b) above at court rates from the date of filing of the Claim till payment in full.
Claimant’s Case. 2The Claimant states that he was a member of the Respondent and that he applied to withdrawal from the Respondent vide his letter of 12/10/2022. He avers that the Respondent did not refund his dues within 60 days as was expected.He states that he made a Notice of Intention to sue to the Respondent but to no avail.
3. In his Witness Statement dated 4/5/2023, the Claimant states that he was a member of the Respondent member no. 83738 with Kshs. 20,000/= shares and Kshs. 773,533. 44/= savings.He avers that he did a withdrawal notice on 12/10/2021 and prays this Court to compel the Respondent to refund his shares and savings totally Kshs. 773,537. 44/=.The Claimant has filed vide the letter of 4/5/2023 the following documents in support of his Claim; Demand letter of 23/2/2023.
Demand letter 23/3/2023.
Application to withdrawal letter of 12/10/2022.
4. This being a share/deposit refund issue the court had directed that the matter is dispensed off through Written Submissions.In his Written Submissions dated 15/2/2024, the Claimant has given a background of the Claim and an analysis of the same.The Claimant has challenged the legality of the 2022 Annual General resolution that rescheduled refunds. He avers that no minutes of the 2022 Annual General Meeting were filed in Court.
Respondent’s Case. 5. The Defence is based on the Statement of Defence dated 2/6/2023. The Respondent confirms that the Claimant was his member number 83738. The Respondent denies receiving the Claimant’s Notice of Withdrawal. The Respondent also denies the Claimant figure of Kshs. 773,533. 44/=.The Respondents states that the Claimant was bound by the 2022 Annual General Meeting resolution which stopped refunds for a period of two years.The Respondent states that pursuant to the 2022 Respondent Annual General Meeting, the Claimant’s refund was to be put in abeyance as per the Annual General Meeting resolutions hence the Claimant notice to withdrawal was on no consequence.At the time of writing this judgement the Respondent had not filed Written Submissions.
Analysis. 6. The Claimant has proved that he was a member of the Respondent, member number 83738. He has filed documents from the office of the Respondent to support his case. In particular, he has filed his member statement for the period 2015 to August 2023. The Claimant has satisfied this court the right procedure was followed in pursuit of his savings with the Respondent.The Respondent admits that the Claimant was its member. The explanation that the Claimant was bound by the 2022 Annual General Meeting resolutions to per refunds has not been sustained in court.No minutes of the Annual General Meetings were filed to support this position. We note that the Kshs. 20,000/= Share Capital is not refundable.
Conclusion. 7. Since the Claimant fully complied to the procedure on withdrawal and that the Respondent admits he was its member, this court enters judgement in favour of the Claimant against the Respondent for Kshs. 751,404 /= with costs and interest.
JUDGMENTSIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 26TH DAY OF SEPTEMBER, 2024. HON. B. KIMEMIA CHAIRPERSON SIGNED 26. 9.2024HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 26. 9.2024HON. BEATRICE SAWE MEMBER SIGNED 26. 9.2024HON. FRIDAH LOTUIYA MEMBER SIGNED 26. 9.2024HON. PHILIP GICHUKI MEMBER SIGNED 26. 9.2024HON. MICHAEL CHESIKAW MEMBER SIGNED 26. 9.2024HON. PAUL AOL MEMBER SIGNED 26. 9.2024TRIBUNAL CLERK MUTAIMbaabu advocate for the Claimant - PresentMetropolitan Sacco Society Limited – No appearanceHON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 26. 9.2024