[2015] KEELRC 444 (KLR)
The court found that the respondent, while employed by the claimant, obtained a staff loan of Kshs.1,000,000 for the purchase of a motor vehicle. Upon resignation, the respondent admitted to an outstanding loan balance of Kshs.778,144. The court held that the claimant was entitled to recover this amount in...
Source-derived case information.
- Citation
- [2015] KEELRC 444 (KLR)
- Parties
- Applicant: Kenya Women Finance Trust DMT Ltd; Respondent: Stephen Mwaniki Muriuki
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nyeri
- Jurisdiction
- Kenya
- Case Number
- Cause 42 of 2012
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- judgment for the claimant; counterclaim dismissed
- Judges
- B Ongaya
- Legal Topics
- Staff Loans, Employee Resignation, Terminal Dues, Employer Employee Disputes
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Women Finance Trust DMT Ltd
Applicant
Stephen Mwaniki Muriuki
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the claimant is entitled to repayment of the outstanding staff loan by the respondent.
- 2 Whether the court has jurisdiction to determine a dispute arising from a staff loan between employer and employee.
- 3 Whether the respondent is entitled to terminal dues and mesne profits as counterclaimed.
Ratio Decidendi
The court found that the respondent, while employed by the claimant, obtained a staff loan of Kshs.1,000,000 for the purchase of a motor vehicle. Upon resignation, the respondent admitted to an outstanding loan balance of Kshs.778,144. The court held that the claimant was entitled to recover this amount in accordance with the staff loan agreement. The court further determined that it had jurisdiction to adjudicate the dispute as it arose from the employment relationship. Regarding the counterclaim, the court found that the claimant had already addressed the respondent's terminal dues in the pleadings and submissions, rendering the counterclaim for further computation and payment of...
Court Disposition
judgment for the claimant; counterclaim dismissed
Orders
- The respondent shall repay the claimant the outstanding loan balance of Kshs.778,144.00 at the interest rates applicable to staff loans as per the staff loan agreement.
- The respondent shall pay the claimant's costs of the suit, including costs of the failed counterclaim.
Full Case Text
Judgment text and source record
31 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF KENYA AT NYERI
CAUSE NO. 42 OF 2012
(Formerly Cause No.1939 of 2012 at Nairobi)
KENYA WOMEN FINANCE TRUST DMT LTD..........CLAIMANT
VERSUS
STEPHEN MWANIKI MURIUKI..............................RESPONDENT
(Before Hon. Justice Byram Ongaya on Friday 9th October, 2015)
JUDGMENT
The claimant filed the statement of claim on 27. 09. 2012 through Magee Wa Magee Advocates. The respondent prayed for judgment against the respondent for:
a) The repayment of the outstanding loan balance of Kshs.778, 144. 00.
b) Interest at court rates.
c) The cost of the suit.
d) Any other relief that the honourable court may deem fit and just to grant.
The respondent filed the response to the statement of claim on 22. 03. 2013 through Onyoni Opini & Gachuba Advocates. The respondent prayed that the statement of claim be dismissed with costs to the respondent. The respondent filed amended response and counterclaim on 30. 04. 2013 and the respondent prayed for judgment against the claimant for:
a) An order that the claimant do calculate and pay to the respondent his terminal dues plus interest thereof.
b) Mesne profits up to and until when the respondent dues and interest thereof is paid in full.
c) Costs of the suit.
d) Interest on a, and b, above.
e) Any other relief that the honourable court might deem fit and just to grant.
The claimant filed the reply to amended response and counterclaim on 28. 05. 2013. The claimant prayed that the counterclaim be dismissed with costs. The respondent filed the reply to reply to counterclaim on 20. 06. 2013 and prayed that the claim be dismissed and the counterclaim be allowed.
The 1st issue for determination is whether the claimant is entitled to the prayers as made. The pleadings and evidence are clear. At all material time the respondent was the claimant’s employee serving as the regional accountant at the claimant’s Mt. Kenya West Region. On 1. 11. 2010 while in the claimant’s employment, the respondent entered an agreement with one Antony Ndungu Karita for sale and purchase of a motor vehicle registration no. KBM 120C, Subaru, TA-BPS, S.A Wagon valued at Kshs.1,000,000. 00. The respondent being the claimant’s employee applied for a staff loan of Kshs.1,000,000. 00 for purpose of purchasing the said motor vehicle. For that purpose the respondent completed the relevant loan application form and the same was approved and the loan advanced as applied for.
The respondent resigned from his employment on 6. 10. 2011 at a time he owed the claimant Kshs.778,144. 00 as claimed. At paragraph 4 of the amended response to the statement of claim and counterclaim, the respondent stated that he admitted paragraph 3, 4, 5, 6, 7, 8, and 11 of the claim. Paragraph 8 of the statement of claim states thus, the respondent has an outstanding loan balance of Kshs.778,144. 40. The respondent has admitted that fact and the court finds that the claimant is entitled to the claim and prayer as made in the statement of claim. The claimant’s prayers will therefore succeed.
The 2nd issue for determination is whether the court has jurisdiction to determine the suit. There is no dispute that the claimant’s case was based on a staff loan advanced to the respondent while the respondent was an employee. There is no doubt that the dispute was about that staff loan, between an employer and an employee. The court enjoyed the jurisdiction to hear and determine the dispute.
The 3rd issue is whether the respodent is entitled to the prayers made in the counterclaim. It was a prayer that the claimant computes the respondent’s terminal dues consequential to the accepted resignation. The court has considered the material on record and finds that the claimant has already discharged that responsibility in the pleadings and the submissions on record as it would be superfluous to make orders as prayed for. To that extent, the respondent is not entitled to the prayers as made and the same shall fail.
In conclusion, the claimant’s suit and the respondent’s counterclaim are determined as judgment is entered for the claimant against the respondent for:
a) The respondent to repay the claimant the outstanding loan balance of Kshs.778,144. 00 at the interest rates that applied to the staff loans as advanced to the claimant and as per the staff loan agreement that was concluded between the parties.
b) The respondent to pay the claimant’s costs of the suit including the costs of the failed counterclaim.
Signed, datedanddeliveredin court atNyerithisFriday, 9th October, 2015.
BYRAM ONGAYA
JUDGE