[2024] KECPT 1697 (KLR)

[2024] KECPT 1697 (KLR)

The Tribunal found that the Claimants lawfully withdrew from the Respondent Sacco by giving written notice as required by the by-laws. The Respondent was obligated to allow the 60-day notice period to lapse, during which both parties were to settle accounts and address any outstanding liabilities. The Respondent's...

Source-derived case information.

Citation
[2024] KECPT 1697 (KLR)
Parties
Applicant: Patrick Njoroge Kimani; Applicant: John King'u Wambui; Applicant: Michael Kenda; Applicant: Joseph Gichuki Mutungu; Applicant: Robert Mwangi Nderitu; Applicant: Stanley Ngugi Gacheru; Respondent: Kangemi Matatu Owners Sacco; Respondent: National Transport & Safety Authority
Court
Cooperative Tribunal
Jurisdiction
Kenya
Case Number
Tribunal Case 856 of 2016
Procedural Posture
Tribunal Case / Judgment
Outcome
Judgment for the Claimants against the Respondent.
Judges
BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
Legal Topics
Cooperative Societies Membership, Psv Licensing, Withdrawal Procedure, Notice Period Compliance, Special Damages, Injunctive Relief
Source Language
en
Commercial and Corporate Civil Procedure Cooperative Societies Membership Psv Licensing Withdrawal Procedure Notice Period Compliance Special Damages Injunctive Relief

Source-derived case record

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Parties

Patrick Njoroge Kimani

Applicant

John King'u Wambui

Applicant

Michael Kenda

Applicant

Joseph Gichuki Mutungu

Applicant

Robert Mwangi Nderitu

Applicant

Stanley Ngugi Gacheru

Applicant

Kangemi Matatu Owners Sacco

Respondent

National Transport & Safety Authority

Respondent

Procedural Posture

Tribunal Case / Judgment

  1. 1 Whether the Claimants lawfully withdrew from the Respondent Sacco and complied with the required notice period.
  2. 2 Whether the Respondent was justified in removing the Road Service Licenses before the expiry of the 60-day notice period.
  3. 3 Whether the Claimants had outstanding liabilities to the Respondent at the time of withdrawal and if this affected their rights.

Ratio Decidendi

The Tribunal found that the Claimants lawfully withdrew from the Respondent Sacco by giving written notice as required by the by-laws. The Respondent was obligated to allow the 60-day notice period to lapse, during which both parties were to settle accounts and address any outstanding liabilities. The Respondent's premature removal of the Claimants' Road Service Licenses before the expiry of the notice period was unlawful and deprived the Claimants of the ability to operate their vehicles, resulting in loss of business. Although some Claimants had outstanding loan balances, the Respondent failed to communicate these within the notice period, breaching its own by-laws. The Tribunal held...

Court Disposition

Judgment for the Claimants against the Respondent.

Orders

  • A declaration is issued that the Claimants fully notified the Respondent of cessation of membership and the forcible removal of their Road Service Licenses was unlawful and wrongful.
  • Any motor vehicle KBK 023J, KBK 961C, KAM 346D, KBN 670N, KBR 081P, KBH 190V, KAT 647Z and KCB 503S under the Respondent's control through NTSA to be released forthwith from the Respondent's hold.