[2023] KECPT 62 (KLR)
The tribunal found that the claimant was entitled to a refund of his deposits and shares upon withdrawal from the respondent society. The respondent's reliance on the 2019 AGM resolution was not binding on the claimant, as he was neither informed of liquidity issues nor did he consent to the delayed refund schedule....
Source-derived case information.
- Citation
- [2023] KECPT 62 (KLR)
- Parties
- Claimant: John Omoga Ogwaro; Respondent: Metropolitan National Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 204 of 2022
- Procedural Posture
- Civil Claim / Judgment
- Outcome
- claim allowed
- Judges
- M Mwatsama, Gitonga Kamiti, M. Mbeneka
- Legal Topics
- Cooperative Societies, Member Withdrawal, Refund of Savings
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
John Omoga Ogwaro
Claimant
Metropolitan National Society Limited
Respondent
Procedural Posture
Civil Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of his Bosa savings and shares upon withdrawal from the respondent society.
- 2 Whether the respondent can lawfully delay the refund based on a 2019 Annual General Meeting resolution.
Ratio Decidendi
The tribunal found that the claimant was entitled to a refund of his deposits and shares upon withdrawal from the respondent society. The respondent's reliance on the 2019 AGM resolution was not binding on the claimant, as he was neither informed of liquidity issues nor did he consent to the delayed refund schedule. The tribunal held that it would be unfair and unlawful to require the claimant to wait almost two years for his refund, especially in the absence of evidence that he agreed to the 2019 resolution. The respondent was therefore ordered to pay the claimant the undisputed amount as evidenced in the Statement of Account, together with costs and interest.
Court Disposition
claim allowed
Orders
- The respondent shall pay the claimant KES 166,571.88 being refund of deposits and shares.
- The respondent shall pay costs of the suit and interest until payment in full.
Full Case Text
Judgment text and source record
22 paragraphs
Ogwaro v Metropolitan National Society Limited (Tribunal Case 204 of 2022) [2023] KECPT 62 (KLR) (Civ) (26 January 2023) (Judgment)
Neutral citation: [2023] KECPT 62 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Civil
Tribunal Case 204 of 2022
M Mwatsama, Vice Chair, Gitonga Kamiti & M. Mbeneka, Members
January 26, 2023
Between
John Omoga Ogwaro
Claimant
and
Metropolitan National Society Limited
Respondent
Judgment
1. The claimant’s claim brought under Statement of Claim dated April 3, 22 filed on April 5, 22. The claimant avers he was member of respondent until July 27, 21 when he wrote a letter to withdraw his membership. Another reminder was done on November 27, 21 by Kituo cha Sheria.The claimant’s claim is for;a)The said sum of ksh 176,571. 88 being Bosa savings and shares contributed;b)Costs of the suit and interest until payment in full;c)Any other relief so deemed appropriate by this honourable tribunal.
2. The respondent filed a Statement of Defence dated April 22, 22 filed on April 26, 22. The respondent admits receiving a demand letter and states the claimant’s refund was put on schedule for April 23, 2024 as per the Annual General Meeting resolution of 2019.
3. The matter was to be dispensed off by way of written submissions and claimant filed their written submissions dated August 10, 22. On August 26, 22 and respondent as at the date of writing this judgment had filed their written submissions.Having looked at the pleadings and documents filed the issue for determination is “whether the claimant is entitled to their refund”.
4. The respondent’s filed the claimant’s Statement of Account dated April 7, 22 as directed and from the Statement the Claimant had deposits of kshs 166,571. 88. This figure is not denied. The only reason then respondent are not paying they are relying on a resolution of 2019 by members in on Annual General Meeting that the refunds would have on schedule.We ask ourselves if indeed it is fair for the claimant to wait for almost 2 years upon withdrawal to get back their refunds.What is the legality of the said resolution?
5. The claimant contributed and saved with respondent and at no one time was he informed that the respondent was having liquidity issues.He did not agree to the resolution of 2019 and thus cannot be forced to abide by it.
6. We find the respondent owe the claimant as rightly evidenced in the Statement of Account.We thus find in favour of claimant against respondent for ksh 166,571. 88 plus cost and interest.
JUDGMENT, READ AND DELIVERED VIRTUALLY ON 26/1/2023. Hon Mjeni Mwatsama D/Chairperson Signed 26. 1.2023Gitonga Kamiti Member Signed 26. 1.2023Maria Mbeneka Member Signed 26. 1.2023