[2024] KECPT 1704 (KLR)
The Tribunal found that the claimant had sufficiently proved his entitlement to a refund of Kshs. 165,564.46, as evidenced by the undisputed statement produced. The respondent's reliance on AGM resolutions to defer refunds was rejected, as statutory rights under the Co-operative Societies Act prevail over internal...
Source-derived case information.
- Citation
- [2024] KECPT 1704 (KLR)
- Parties
- Applicant: John Muruthi Kamau; Respondent: Metropolitan National Sacco Ltd
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 425.E701 of 2022
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- claim allowed
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Refunds, Deposit Recovery, Cooperative Societies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
John Muruthi Kamau
Applicant
Metropolitan National Sacco Ltd
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of his deposits upon withdrawal from the Sacco.
- 2 Whether the respondent is justified in withholding the refund based on AGM resolutions and alleged lack of proper withdrawal notice.
- 3 Whether the amount claimed by the claimant is accurate and supported by evidence.
Ratio Decidendi
The Tribunal found that the claimant had sufficiently proved his entitlement to a refund of Kshs. 165,564.46, as evidenced by the undisputed statement produced. The respondent's reliance on AGM resolutions to defer refunds was rejected, as statutory rights under the Co-operative Societies Act prevail over internal resolutions. The Tribunal held that the respondent, being operational and not in liquidation, is obligated to honor refund claims by members who have withdrawn. The respondent's admission of part of the debt further supported the claimant's case. Consequently, judgment was entered for the claimant for the full amount claimed, with interest from the date of filing and costs.
Court Disposition
claim allowed
Orders
- Refund of Kshs. 165,564.46 to the claimant.
- The claimant is awarded costs of the suit.
Full Case Text
Judgment text and source record
24 paragraphs
Kamau v Metropolitan National Sacco Ltd (Tribunal Case 425. E701 of 2022) [2024] KECPT 1704 (KLR) (31 October 2024) (Judgment)
Neutral citation: [2024] KECPT 1704 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 425. E701 of 2022
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
October 31, 2024
Between
John Muruthi Kamau
Claimant
and
Metropolitan National Sacco Ltd
Respondent
Judgment
1. The matter for determination is a Statement of Claim dated 21st July 2022 in which the Claimant claims that he was a member of the Respondent being member number 77837. The Claimant avers that he withdrew from membership on 9th May 2020 and is yet to receive his savings amounting to Ksh. 165,564/-. The claimant therefore prays fora.A refund of Kshs. 165,564/=b.Interest on (a) above at the Tribunal rates from 9th May 2020 to the date of full refund.c.Costs of this claim.The Claim is accompanied by a Witness Statement, and Lists of Documents in support of the claim.
2. The Respondent filed a Response to Statement of Claim dated 8th August 2022 in which they contend that they never received a Notice of Withdrawal as per the Sacco by-laws. Further, they aver that as per the 2022 Annual General Meeting resolutions by the General Assembly, members resolved and agreed to schedule refunds after two years due to the liquidity challenges facing the Respondent. They admit that the Claimant has deposits but only to the tune of Kshs. 135,027. 46 as opposed to Kshs. 165,564/- claimed by the Claimant.
3. The matter was canvassed by way of submissions and hence there was no hearing.
4. Both parties filed their submissions. In their submissions, the Claimants submitted that they have proven their case on a balance of probabilities and that judgement should be entered in their favour. They also submit that the Claimant issued a proper notice of withdrawal from the SACCO.
5. In their submissions, the Respondents submitted that the Claimant did not issue a proper notice of withdrawal and also on the Annual General Meeting resolution of 2022 of stopping refunds for two years on liquidity challenges. Also, that the Claimant has no claim against the Respondent and therefore no deserving of the orders sought.
Analysis 6. This Tribunal has considered the submissions by the parties and the documents filed by the parties. There is no dispute that the Claimant is a member of the Respondent.
7. This Tribunal sympathizes with the Respondent’s financial situation. However, on the other hand, in matters of refunds, is a member’s right to his deposits. The Co-operative Societies Act is clear on the concept of voluntary membership to a Co-operative Tribunal. As long as the Co-operative society is in operation, and has not gone into liquidation, it is expected to honor its obligation to its members. The good thing is that refund claims are liquidated sums, and the Respondent can go after, when it has regularized its books and brought order into operations.
8. The question, that this Tribunal now asks itself is whether the Claimant has sufficiently proved his claim on a balance of probabilities and if he is entitled to a refund. In their Statement of Defence, the Respondent admits owing the Claimant Kshs. 135,027. 46/-. The Claimant has produced a statement dated 16th September 2020. The Statement has not been disputed or controverted by the Respondent, and this Tribunal is inclined to belief that it was extracted from the Claimant's account with the Respondent. This court will enter judgement on the value on the face of the statement.
9. Flowing from above, we find merit in the Claimants Claim and order as follows-a.Refund of Kshs. 165,564. 46/- to the Claimantb.The Claimant is awarded costs of this suit together with interest from date of filing suit at Tribunal rates until payment in full.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF OCTOBER, 2024. HON. B. KIMEMIA CHAIRPERSON SIGNED 31. 10. 2024HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 31. 10. 2024HON. BEATRICE SAWE MEMBER SIGNED 31. 10. 2024HON. FRIDAH LOTUIYA MEMBER SIGNED 31. 10. 2024HON. PHILIP GICHUKI MEMBER SIGNED 31. 10. 2024HON. MICHAEL CHESIKAW MEMBER SIGNED 31. 10. 2024HON. PAUL AOL MEMBER SIGNED 31. 10. 2024Tribunal Clerk JemimahKaranja Mbugua advocate for Claimant.No appearance for Respondent.HON. B. KIMEMIA CHAIRPERSON SIGNED 31. 10. 2024