[2025] KECPT 272 (KLR)

[2025] KECPT 272 (KLR)

The Tribunal found that the Respondent only paid the principal sum and dividends after the suit was filed and had not honored any prior agreement to pay in instalments. There was no evidence of a binding compromise or settlement agreement to withdraw the suit. The Tribunal held that the Claimant was compelled to incur legal costs due to the Respondent's evasiveness and failure to settle the matter amicably before litigation. Applying Section 27 of the Civil Procedure Act, the Tribunal determined that costs should follow the event, and the Claimant, having succeeded in his claim, was entitled to costs and interest. The Tribunal rejected the Respondent's argument that the suit was...

Citation
[2025] KECPT 272 (KLR)
Parties
Applicant: Joseph Kigathi Njumea; Respondent: Christine Ngunyu Abdalla
Court
Cooperative Tribunal
Jurisdiction
Kenya
Judgment Date
29 April 2025
Case Number
Tribunal Case 559/E604 of 2023
Procedural Posture
Civil Suit / Judgment
Outcome
judgment for the applicant
Judges
BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
Legal Topics
Guarantee Liability, Loan Default, Costs Award, Interest on Judgment Debt
Source Language
English
Civil Procedure Banking and Finance Guarantee Liability Loan Default Costs Award Interest on Judgment Debt

Case Brief

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Parties

Joseph Kigathi Njumea

Applicant

Christine Ngunyu Abdalla

Respondent

Procedural Posture

Civil Suit / Judgment

Legal Issues

  1. 1 Whether the Respondent should pay costs and interest after settling the principal sum and dividends before hearing.
  2. 2 Whether payment of the principal sum before hearing constitutes a successful suit for purposes of awarding costs.
  3. 3 Whether there was a binding compromise or settlement agreement between the parties.

Ratio Decidendi

The Tribunal found that the Respondent only paid the principal sum and dividends after the suit was filed and had not honored any prior agreement to pay in instalments. There was no evidence of a binding compromise or settlement agreement to withdraw the suit. The Tribunal held that the Claimant was compelled to incur legal costs due to the Respondent's evasiveness and failure to settle the matter amicably before litigation. Applying Section 27 of the Civil Procedure Act, the Tribunal determined that costs should follow the event, and the Claimant, having succeeded in his claim, was entitled to costs and interest. The Tribunal rejected the Respondent's argument that the suit was...

Court Disposition

judgment for the applicant

Orders

  • Judgment entered in favour of the Claimant for Ksh. 292,375.33.
  • Respondent to pay costs of the suit.