[2024] KECPT 971 (KLR)
The Tribunal found that the claimant, having withdrawn her membership, is entitled to a refund of her deposits as provided by law. While the respondent cited liquidity challenges and an AGM resolution suspending refunds for two years, the Tribunal held that such internal resolutions cannot override the claimant's...
Source-derived case information.
- Citation
- [2024] KECPT 971 (KLR)
- Parties
- Applicant: Rodah Mwende Saruni; Respondent: Metropolitan National Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E005 (4) of 2023
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for claimant
- Judges
- J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Deposits, Refund of Deposits, Liquidity Challenges, Stay of Execution
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Rodah Mwende Saruni
Applicant
Metropolitan National Society Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of her deposits upon withdrawal from the Sacco.
- 2 Whether the respondent's AGM resolution to suspend refunds for two years is binding on the claimant.
- 3 Whether a stay of execution should be granted.
Ratio Decidendi
The Tribunal found that the claimant, having withdrawn her membership, is entitled to a refund of her deposits as provided by law. While the respondent cited liquidity challenges and an AGM resolution suspending refunds for two years, the Tribunal held that such internal resolutions cannot override the claimant's statutory right to her deposits. The Tribunal considered the respondent's financial position but emphasized that the claimant's entitlement remains. To balance interests, the Tribunal granted a 30-day stay of execution to allow the respondent time to comply without jeopardizing its operations. Judgment was entered for the claimant for the full amount claimed, plus costs and...
Court Disposition
judgment for claimant
Orders
- Judgment entered in favour of the claimant for Kshs. 205,592.19 plus costs and interest.
- 30 days stay of execution granted from the date of judgment.
Full Case Text
Judgment text and source record
21 paragraphs
Saruni v Metropolitan National Society Limited (Tribunal Case E005 (4) of 2023) [2024] KECPT 971 (KLR) (30 May 2024) (Judgment)
Neutral citation: [2024] KECPT 971 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case E005 (4) of 2023
J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
May 30, 2024
Between
Rodah Mwende Saruni
Claimant
and
Metropolitan National Society Limited
Respondent
Judgment
Facts of the case. 1. The Claimant was a member of the Respondent Sacco and on 12th September, 2022 she made an Application to withdraw her membership. As at the time of withdrawing her membership, her deposits stood at Kshs. 205,592. 19/=.The Respondent did not refund her deposits and on 9th January, 2023 she filed this claim to recover her deposits.
2. On 8th February, 2022 the Respondent filed their statement of Defence which did not expressly, deny owing the Claimant Kshs.205,592. 19/= but also indicated the following:i.That they did not receive any demand notice by the Claimant as alleged.ii.That the Respondents Annual General Meeting had made a resolution where members resolved and agreed to stop all further refunds as a result of liquidity challenges they are facing which are within the knowledge of the Claimant.
3. On 21st June, 2023 this Tribunal made orders for the case to be canvassed through written submissions and the same having been complied with, the only question remaining for determination is as to whether the claimant should wait for two years to be refunded.
Should the Claimant Wait for Two Years to be Refunded 4. The Respondent has admitted to having liquidity challenges making it impossible to refund all members withdrawing at once as such action will collapse their Sacco.The Respondent claims that their Annual General Meeting did put refunds in abeyance for two years after which they will be able to pay the refunds.
5. We have considered the evidence adduced and the circumstances of both parties including the fact that the Respondent in other cases of refund also before this Tribunal has agreed to facilitate a viable means through which its members who are withdrawing can be refunded in a manner that does not collapse the Sacco.As such we order the following :
Final OrdersJudgment is entered in favour of Claimant against Respondent for Kshs. 205,592. 19/= plus costs and interest.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 30TH DAY OF MAY, 2024. HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 30. 5.2024HON. BEATRICE SAWE - MEMBER SIGNED 30. 5.2024HON. FRIDAH LOTUIYA - MEMBER SIGNED 30. 5.2024HON. PHILIP GICHUKI - MEMBER SIGNED 30. 5.2024HON. MICHAEL CHESIKAW - MEMBER SIGNED 30. 5.2024HON. PAUL AOL - MEMBER SIGNED 30. 5.2024Tribunal Clerk JonahRodah Saruni presentKorir advocate for the RespondentKorir advocate – we pray for 30 days stay of executionRodah Saruni- No objectionTribunal order:30 days stay of execution granted.HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 30. 5.2024