[2024] KECPT 977 (KLR)
The Tribunal found that the Claimant had established his membership in the Respondent Sacco and the amount of his deposits through documentary evidence, including pay slips and member statements. The Respondent did not dispute the deposit amount but relied on an internal AGM resolution to justify withholding the...
Source-derived case information.
- Citation
- [2024] KECPT 977 (KLR)
- Parties
- Applicant: Alex Ndiga Kariuki; Respondent: Metropolitan Sacco Ltd
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 711 (E786) of 2022
- Procedural Posture
- Tribunal Claim / 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 Deposits, Contractual Obligations, Liquidity Challenges
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Alex Ndiga Kariuki
Applicant
Metropolitan 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 Respondent Sacco.
- 2 Whether the Respondent's AGM resolution and liquidity challenges lawfully justify withholding the Claimant's refund.
- 3 Whether the Claimant has proven his membership and deposit amount.
Ratio Decidendi
The Tribunal found that the Claimant had established his membership in the Respondent Sacco and the amount of his deposits through documentary evidence, including pay slips and member statements. The Respondent did not dispute the deposit amount but relied on an internal AGM resolution to justify withholding the refund for two years due to liquidity challenges. The Tribunal held that such internal resolutions cannot override the statutory right of a member to receive a refund of deposits upon withdrawal. As the two-year period cited by the Respondent had already lapsed by the time of judgment, and no other lawful justification for withholding the funds was provided, the Tribunal concluded...
Court Disposition
Judgment for the Claimant.
Orders
- The Respondent shall pay the Claimant Kshs. 200,596.10.
- The Respondent shall pay costs of the suit and interest until payment in full.
Full Case Text
Judgment text and source record
22 paragraphs
Kariuki v Metropolitan Sacco Ltd (Tribunal Case 711 (E786) of 2022) [2024] KECPT 977 (KLR) (27 June 2024) (Judgment)
Neutral citation: [2024] KECPT 977 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 711 (E786) of 2022
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
June 27, 2024
Between
Alex Ndiga Kariuki
Claimant
and
Metropolitan Sacco Ltd
Respondent
Judgment
1. Matter for determination is vide Statement of Claim dated 30/8/2022 filed on even date where the Claimant claims that on 26/8/2020 he wrote to the Respondent expressing his wish to withdraw from the Respondent Sacco. He had savings of Kshs. 200,596. 10/= as deposits contributed.The Respondent has failed to refund his contributions and as such, the Claimant prays for:a.The said sum of Kshs. 200,596. 10/=b.Costs of the suit and interest until payment in full.c.Any other relief so deemed appropriate by the Honourable Tribunal.
2. The Claimant filed his List of Documents dated 30/8/2022 which include:1. Notice of Withdrawal2. Pay slip3. Shares statements.
3. The Respondent filed a Statement of Defence dated 8/10/2022 filed on 16/12/2022 and the Respondent despite denying the Claim admitted the Claimant was indeed their member No. 18015 and was operating FOSA Account No. 20019200. The Respondents aver there was an Annual General Meeting resolution and a schedule for refund and as at May 2022, they were not to refund any member for a period of 2 years in line with the resolution because the Respondent is facing liquidity challenges.
4. Being a matter for refund, the Tribunal ordered for parties to dispense off the Claim by way of Written Submissions. The Claimant filed Written Submissions dated 20/3/2024 on 21/3/2024 while the Respondent as at the date of writing this judgement has not filed their Written Submissions.The Claimant was a member of the Respondent as he evidenced from his List of Documents dated 30/5/2024 and his pay slip of September 2020 showed deductions were made to his pay slip to the Respondent Metropolitan Sacco.Claimant Exhibit 3 the Member Statements of Account dated 19/8/2022 confirmed the Claimant had savings of Kshs. 200,596. 10/=.The Respondent have not disputed this fact other than the mere denial. Further, the Respondent’s Statement of Defence was that no payments were to be made for 2 years from May 2022, which is now past.Even if we were to consider the Respondent’s position and take into account their resolution if at all, they owe the Claimant Kshs. 200,596. 10/=.
5. Having not filed any other documents, the Respondent’s conduct eases our determination of the matter.
6. The Claimant has proven through his documents that he was indeed:1. A member of the Respondent Sacco.2. Had deposits of Kshs. 200,596. 10/=3. Wrote a withdrawal letter which is yet to be acted upon.
Upshot 7. Judgement is entered in favor of the Claimant against the Respondent for Kshs. 200,596. 10/= plus cost and interest.
JUDGMENTSIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 27TH DAY OF JUNE, 2024. HON. B. KIMEMIA CHAIRPERSON SIGNED JUNE 27, 2024HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 27. 6.2024HON. BEATRICE SAWE MEMBER SIGNED 27. 6.2024HON. FRIDAH LOTUIYA MEMBER SIGNED 27. 6.2024HON. PHILIP GICHUKI MEMBER SIGNED 27. 6.2024HON. MICHAEL CHESIKAW MEMBER SIGNED 27. 6.2024HON. PAUL AOL MEMBER SIGNED 27. 6.2024Tribunal Clerk JonahLater:Mkamani advocate holding brief for Gitonga Muriuki advocate for the RespondentMkamani advocate – We pray for 30 days stay of executionTribunal orders30 days stay of execution granted.HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED JUNE 27, 2024