Ndirangu v Bacista Savings & Credit Co-operative Society

REPUBLIC OF KENYA IN THE COOPERATIVE TRIBUNAL AT NYERI TRIBUNAL CASE NO. E004 of 2025 ANTONY GICHOHI NDIRANGU……………………. …………….CLAIMANT VERSUS BACISTA SAVINGS & CREDIT CO-PERATIVE SOCIETY……....RESPONDENT RULING 1. This ruling dispenses with the Notice To Show Cause issued on 18th February 2026. 2. The Respondent filed a replying affidavit dated 8th June 2026. In their Response, the Respondent is opposing the Notice to Show Cause. The Respondent has informed this Tribunal that the Claimant has not filed an application to lift the Respondent’s veil of incorporation, and that the failure will jeopardize the rights of CTC NO. E004 OF 2025 RULING 1 the Respondent’s officials and deny them an opportunity to be heard before being exposed to personal liability. That the Respondents’ officials are mere office bearers and cannot be subjected to personal liability. That there are numerous refund claims against the Respondent as well as an ongoing case against the Respondent’s previous officials seeking to recover the surcharged amount. That it is the officials from the past board who should be held responsible to settle such claims. They pray that the notice to show cause be dismissed with costs. ANALYSIS 3. The question before this tribunal is whether the Judgement- debtor has shown cause why execution should not issue. The judgement debtor contends that the Respondents officials cannot be held personally liable for the debts of the Respondents. That they have received various refund claims by its members and also that there is a matter in the Tribunal for enforcement of surcharge orders against former officials in the Tribunal. 4. In the case of Tarpo Industries Ltd vs Picasso Products Limited the Court held that:- CTC NO. E004 OF 2025 RULING 2 “the Judgment debtor’s bond fides (good faith) is the most important consideration when the Court considers whether some indulgence can be fairly given to the judgment debtor without unreasonably prejudicing the decree-holder.” Further in the case of Lavington Security Limited vs Nairobi City Water & Sewerage Co. Ltd (2014) eKLR, the Court defined what amounts to “sufficient cause” to include: the debtor is unable to pay lump sum, the debtor can pay by reasonable monthly installments and the application is made in utmost good faith. 5. In this present case, the Respondents are not seeking any indulgence of this Tribunal. They state that the current officials of the Respondents are not liable and that committing to jail the current officials is not a proper remedy to the dispute at hand. 6. The matter was for refund of the Claimant’s contributions that he had made to the Respondent over time. A member is required to be refunded their contributions within a certain time CTC NO. E004 OF 2025 RULING 3 after withdrawal from the cooperative society. As much as we sympathize with the financial challenges affecting the Applicants, and acknowledge that there is a matter ongoing at the Tribunal for enforcing the surcharge orders against their former officials, it is agreed that a member is entitled to refund of their contribution upon exit. Unless there is a moratorium on refunds or the Co- operative Society has been dissolved. None of that has been demonstrated by the Respondents, and it is assumed that since the Respondent is still in operation, it is able to meet its liabilities as and when they occur. 7. In the upshot of the foregoing, we find that the judgment debtor has not shown sufficient cause why the warrants of arrest should not issue and we make the following orders; a) The Judgement Debtor to settle the decretal sum within 14 days of this Ruling, failure to which Warrants will issue on the 15th day of this Ruling. b) No order as to costs. CTC NO. E004 OF 2025 RULING 4 Ruling signed, dated and delivered virtually at Nairobi this 23rd day of July, 2026. Hon. J. Mwatsama Chairperson Signed 23.7.2026 Hon. Beatrice Sawe 23.7.2026 Hon. Fridah Lotuiya 23.7.2026 Member Signed Member Signed Hon. Paul Aol 23.7.2026 Member Signed Hon. Michael Chesikaw Member Signed 23.7.2026 Tribunal Clerk Jemimah Muthoni advocate or Decree Holder/Claimant. Kirui advocate for the Respondent. Hon. J. Mwatsama Chairperson 23.7.2026 Signed CTC NO. E004 OF 2025 RULING 5