[2024] KECPT 980 (KLR)
The Tribunal found that the claimant, having withdrawn her membership, is entitled to a refund of her deposits. The respondent admitted to owing the sum but cited liquidity challenges and an AGM resolution suspending refunds for two years. The Tribunal held that while the Sacco's financial difficulties and AGM...
Source-derived case information.
- Citation
- [2024] KECPT 980 (KLR)
- Parties
- Applicant: Catherine N Kamula; Respondent: Metropolitan National Society Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E003 (2) of 2023
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for the claimant
- Judges
- J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Deposits, Refund of Deposits, Liquidity Challenges, Annual General Meeting Resolutions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Catherine N Kamula
Applicant
Metropolitan National Society Society Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of her deposits upon withdrawal of membership.
- 2 Whether the respondent's liquidity challenges and AGM resolution justify delaying the refund for two years.
Ratio Decidendi
The Tribunal found that the claimant, having withdrawn her membership, is entitled to a refund of her deposits. The respondent admitted to owing the sum but cited liquidity challenges and an AGM resolution suspending refunds for two years. The Tribunal held that while the Sacco's financial difficulties and AGM resolutions may affect the mode and timing of payment, they do not negate the claimant's right to her deposits. The Tribunal considered the need to balance the claimant's rights with the Sacco's viability and noted that in similar cases, the respondent had facilitated refunds in a manner that did not jeopardize its operations. Accordingly, judgment was entered for the claimant for...
Court Disposition
judgment for the claimant
Orders
- Judgment entered in favour of the claimant against the respondent for Kshs. 527,148.75 plus costs and interest.
- 30 days stay of execution granted.
Full Case Text
Judgment text and source record
20 paragraphs
Kamula v Metropolitan National Society Society Limited (Tribunal Case E003 (2) of 2023) [2024] KECPT 980 (KLR) (30 May 2024) (Judgment)
Neutral citation: [2024] KECPT 980 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case E003 (2) of 2023
J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
May 30, 2024
Between
Catherine N Kamula
Claimant
and
Metropolitan National Society Society Limited
Respondent
Judgment
Facts of the case. 1. The Claimant was a member of the Respondent Sacco and on 25th October, 2022, she made an Application to withdraw her membership. As at the time of withdrawing her membership, her deposits stood at Kshs. 527,148. 75/=.
2. The Respondent did not refund her deposits and on 9th January, 2023 she filed this claim to recover her deposits. The claim sought for orders:a.The said sum of Kshs. 527,148. 75/=.b.Costs of the suit and interest until payment in full.c.Any other relief so deemed appropriate by this Honourable Tribunal.On 8th February, 2022, the Respondent filed their Statement of Defence which did not expressly deny owing the Claimant Ksh.527,148. 75/= but also indicated the following:SUBPARA i.That they did not receive any demand notice by the claimant as alleged.SUBPARA ii.That the Respondents Annual General Meeting had made a resolution where members resolved and agreed to stop all further refunds as a result of liquidity challenges they are facing which are within the knowledge of the Claimant.
3. On 21st June, 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 for two years to be refunded.
Should the Claimant Wait for Two Years to be Refunded 4. The Respondent has admitted to having liquidity challenges making it impossible to refund all members withdrawing at once as such action will collapse their Sacco.The Respondent claims that their Annual General Meeting did put refunds in abeyance for two years after which they will be able to pay the refunds.
5. We have considered the evidence adduced and the circumstances of both parties including the fact that the Respondent in other cases of refund also before this Tribunal has agreed to facilitate a viable means through which its members who are withdrawing can be refunded in a manner that does not collapse the Sacco.As such we order the following:Final ordersi.Judgment is entered in favour of Claimant against Respondent for Kshs. 527,148. 75/= plus cost 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 JonahCatherine Kamula presentKorir advocate for RespondentKorir advocate -We pray for 30 days stay of executionCatherine Kamula – No objectionTribunal orders:30 days stay of execution granted.Hon. J. Mwatsama - Deputy Chairperson Signed 30. 5.2024