[2023] KECPT 1035 (KLR)
The Tribunal found that the Claimant was a member of the Respondent Sacco and had withdrawn her membership. The Respondent did not dispute the membership or the amount owed but relied on an AGM resolution suspending refunds due to liquidity challenges. The Tribunal held that such internal resolutions cannot override...
Source-derived case information.
- Citation
- [2023] KECPT 1035 (KLR)
- Parties
- Applicant: Gisiri Mokami; Respondent: Metropolitan National Sacco Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E704 of 2022
- Procedural Posture
- Civil Claim / Judgment
- Outcome
- judgment for the claimant
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, PO Aol
- Legal Topics
- Sacco Member Refund, Share Capital Repayment, Liquidity Challenges, Costs and Interest
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Gisiri Mokami
Applicant
Metropolitan National Sacco Society Limited
Respondent
Procedural Posture
Civil Claim / Judgment
Legal Issues
- 1 Whether the Claimant is entitled to a refund of Kshs. 290,133.82 from the Respondent Sacco.
- 2 Whether the Respondent's AGM resolution to suspend refunds due to liquidity challenges is a valid defense against the Claimant's claim.
- 3 Whether the Claimant is entitled to costs and interest on the refunded amount.
Ratio Decidendi
The Tribunal found that the Claimant was a member of the Respondent Sacco and had withdrawn her membership. The Respondent did not dispute the membership or the amount owed but relied on an AGM resolution suspending refunds due to liquidity challenges. The Tribunal held that such internal resolutions cannot override the statutory right of a member to a refund upon withdrawal. The evidence showed that the Claimant was owed Kshs. 290,133.82 as of 21st November 2023. The Tribunal therefore entered judgment in favour of the Claimant for the outstanding amount, together with costs and interest, and granted a 30-day stay of execution as requested by the Respondent and not opposed by the Claimant.
Court Disposition
judgment for the claimant
Orders
- Judgment entered in favour of the Claimant for Kshs. 290,133.82 against the Respondent.
- The Respondent shall pay costs and interest on the awarded sum.
Full Case Text
Judgment text and source record
25 paragraphs
Mokami v Metropolitan National Sacco Society Limited (Tribunal Case E704 of 2022) [2023] KECPT 1035 (KLR) (Civ) (30 November 2023) (Judgment)
Neutral citation: [2023] KECPT 1035 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Civil
Tribunal Case E704 of 2022
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki & PO Aol, Members
November 30, 2023
Between
Gisiri Mokami
Claimant
and
Metropolitan National Sacco Society Limited
Respondent
Judgment
1. The Claimant filed a Statement of Claim on 1st August 2022 dated 25th July 2022. The Claimant claims to be a member of the Respondent from 2nd December 2010 up to 2020 with membership number 10615. The Claimant avers that during the course of her membership she acquired shares amounting to Kshs. 375,000/=.
2. The Claimant avers that she notified the Respondent of her intention to withdraw her membership in 2020 and as at the time of filing this suit, the Respondent had not refunded her.
3. The Claimant pays for: -a.The principal sum of Kshs. 375,000/=.b.Interest on the said amount at the rate of 18% per annum from 2020 till full payment.c.Costs of the claim.d.Interest on (a), (b) and (c) above at court rates from the date of filing this claim.
4. The Respondent filed a Statement of Defence on 15th September 2022 dated the same date. The Respondent admits the Claimant is a member of its Sacco but denies being indebted to her.Further, the Respondent avers that as per its 2022 Annual General Meeting Resolutions, members resolved and agreed to stop all further refunds brought by the liquidity challenges faced by the Respondent and prays for the Claimant’s suit to be dismissed with costs.
5. Matter being one of refund the Tribunal directed it be dispensed off by way of Written Submissions. The Claimant filed their Written Submissions on 25th August 2023 dated 26th May 2023. The Respondent filed their Written Submissions on 23rd August 2023 dated 18th August 2023.
6. Having considered the pleadings before the Tribunal and Written Submissions by the parties, we find the issue for determination is one.
Issue one Whether the Claimant is entitled to a refund of Kshs. 375,500/=? 7. The Respondent does not deny the Claimant was their member but only wish for time to pay the same noting the Respondent’s Annual General Meeting of 2022 was to be on a first come first pay basis. We have looked into the Claimant’s Statement of Account as filed on 21st November 2023 as produced by the Respondent and note the Claimant had savings of Kshs. 360,285. 60/= however, some few payments have been done as refund.
8. What is owing is Kshs. 290,133. 82/=. As such we are convinced the Claimant’s claim as of 21st November 2023 is Kshs. 290,133. 82/=.
9. We enter judgement in favour of the Claimant against the Respondent for Kshs. 290,133. 82/=. Plus, cost and interest.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 30TH DAY OF NOVEMBER, 2023. HON. BEATRICE KIMEMIA CHAIRPERSON SIGNED 30. 11. 2023HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 30. 11. 2023HON. BEATRICE SAWE MEMBER SIGNED 30. 11. 2023HON. FRIDAH LOTUIYA MEMBER SIGNED 30. 11. 2023HON. PHILIP GICHUKI MEMBER SIGNED 30. 11. 2023HON. PAUL AOL MEMBER SIGNED 30. 11. 2023TRIBUNAL CLERK JONAHKorir advocate for the RespondentChelagat advocate for the ClaimantKorir advocate – We pray for 30 days stay of execution.Chelagat advocate- We have no objectionTRIBUNAL ORDER:30 days stay of execution granted.HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 30. 11. 2023