[2023] KECPT 751 (KLR)
The Tribunal found that the Claimant's salary was deducted to satisfy a loan he guaranteed for the Respondent, as evidenced by the loan statement. The Respondent failed to provide any proof of repayment or discharge of the loan. The Tribunal held that a guarantor who pays on behalf of a principal debtor is entitled...
Source-derived case information.
- Citation
- [2023] KECPT 751 (KLR)
- Parties
- Claimant: Benson Juma Mwangala; Respondent: Emelda Atieno Ochieng
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 180 of 2020
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- Claim allowed in full.
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Guarantor Liability, Loan Recovery, Cooperative Societies, Indemnity Claim
- Source Language
- english
Source-derived case record
Summary, issues, holding and outcome
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Parties
Benson Juma Mwangala
Claimant
Emelda Atieno Ochieng
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the Claimant's shares or salary were deducted to satisfy a guarantorship obligation for the Respondent.
- 2 Whether the Respondent is liable to indemnify the Claimant for the amount deducted.
Ratio Decidendi
The Tribunal found that the Claimant's salary was deducted to satisfy a loan he guaranteed for the Respondent, as evidenced by the loan statement. The Respondent failed to provide any proof of repayment or discharge of the loan. The Tribunal held that a guarantor who pays on behalf of a principal debtor is entitled to recover the amount from the debtor. Since the Claimant had paid Kshs. 15,219 due to the Respondent's default, the Respondent was liable to indemnify him. The Tribunal therefore found in favor of the Claimant for the sum claimed, plus interest and costs.
Court Disposition
Claim allowed in full.
Orders
- The Respondent shall pay the Claimant Kshs. 15,219.
- The Respondent shall pay interest on Kshs. 15,219 at court rates from the date of filing suit until payment in full.
Full Case Text
Judgment text and source record
21 paragraphs
Mwangala v Ochieng (Tribunal Case 180 of 2020) [2023] KECPT 751 (KLR) (Nairobi) (31 August 2023) (Judgment)
Neutral citation: [2023] KECPT 751 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Nairobi
Tribunal Case 180 of 2020
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
August 31, 2023
Between
benson Juma Mwangala
Claimant
and
Emelda Atieno Ochieng
Respondent
Judgment
1. Matter for determination is brought vide a Statement of Claim dated 8/7/2020 filed on 16/7/2020. The Claimant’s claim is that him and the Respondent were members of Stima Savings and Credit Cooperative Society Limited.The Respondent approached the Claimant to guarantee her a loan of which she continued paying and had a balance of Kshs. 15,219/= which has been apportioned to the Claimant.The Claimant has made several attempts to get a refund but the same has been futile and he claims Respondent is liable to indemnity him.The Claimant’s claim is for;i.Refund of Kshs. 15,219/= recovered from the Claimant on behalf of the Respondent.ii.Interest on (a) above at court rates until payment in full.iii.Costs of this claim.iv.Any other and/or further relief this Honourable Tribunal may deem fit and just to grant.
2. The Claimant filed his List of Documents dated 8/7/2020 to which contain letter dated 17/2/2020 instructing employer to recover loan arrears.The Respondent filed a Statement of Defence dated 27/8/2020 filed on 8/9/2020 she denied the claim and stated she does not owe Stima Savings and Credit Co-operative Society Limited Kshs. 15,219/= that she paid her loan.
3. The Claimant filed a Supplementary List of Documents dated 14/6/2021 filed on 7/7/2021 which includes;i.Retirement Letter dated 2nd January 2020. ii.Loan Statement issued on 22nd October 2020. iii.Any other document to be produced during the hearing.Parties were to file written submissions as directed by the Tribunal on 15/2/2022. As at the time of writing this judgment none had been filed.The Tribunal shall go ahead and determine the claim.The issue for determination upon perusal and careful consideration of the Statement of Claim, Documents filed by Claimant and Statement of Defence is one.
4. Issue oneWhether the Claimant’s shares/salary were deducted to satisfy guarantorship against the Respondent.The Claimant in his list of Supplementary Documents dated 14/6/2021 attached a loan statement issued on 22/10/2020. In it clearly shares that it is a loan repayment for a guarantor loan and deductions made from his account. The Respondent on the other hand has just denied the claim without any proof of any payment of the loan.A guarantor stands in line for the loanee in case of default but does not mean they have to bear the burden of a loanee who willingly refuses to make payment.It is further unfortunate that Stima Savings and Credit Co-operative Society Limited went ahead deducted salary of Claimant and yet the Respondent was known to them all along had made payment.
5. Be that as it may we find that indeed the Claimant paid for Claimant debt taken by the Respondent and thus Respondent owes him.We find in favor of Claimant against Respondent for Kshs. 15,219/= plus costs and interest from date of filing suit.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF AUGUST, 2023. Hon. Beatrice Kimemia Chairperson Signed 31. 8.2023Hon. J. Mwatsama Deputy Chairperson Signed 31. 8.2023Hon. Beatrice Sawe Member Signed 31. 8.2023Hon. Fridah Lotuiya Member Signed 31. 8.2023Hon. Philip Gichuki Member Signed 31. 8.2023Hon. Michael Chesikaw Member Signed 31. 8.2023Hon. Paul Aol Member Signed 31. 8.2023Tribunal Clerk JemimahJudgment delivered in absence of parties.Hon. J. Mwatsama Deputy Chairperson Signed 31. 8.2023