[2005] KEHC 1766 (KLR)
The court found that while the applicants established grounds for the suit to proceed as a representative action, the allegations of misappropriation and wrongful conduct by the defendants were general and insufficient at this interlocutory stage to justify the grant of an injunction. The court noted that the...
Source-derived case information.
- Citation
- [2005] KEHC 1766 (KLR)
- Parties
- Plaintiff: Stanley Kamaren Riamit; Plaintiff: Omah M. Naisho; Defendant: Elijah Siololo; Defendant: Kemerai Siliantor; Defendant: Joseph Tikaira; Defendant: Oloishuro Nariyo; Defendant: Senet Ole Riamit; Defendant: Jeremiah K. Meikwaya; Defendant: Mein Ole Nantenya; Defendant: Oloonfubiu Ololdandash
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 252 of 2005
- Procedural Posture
- Civil Suit / Ruling on Representative Suit and Interlocutory Injunction
- Outcome
- Application partly allowed and partly dismissed.
- Judges
- PJ Ransley
- Legal Topics
- Representative Suits, Interlocutory Injunctions, Self Help Groups, Misappropriation of Funds
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Stanley Kamaren Riamit
Plaintiff
Omah M. Naisho
Plaintiff
Elijah Siololo
Defendant
Kemerai Siliantor
Defendant
Joseph Tikaira
Defendant
Oloishuro Nariyo
Defendant
Senet Ole Riamit
Defendant
Jeremiah K. Meikwaya
Defendant
Mein Ole Nantenya
Defendant
Oloonfubiu Ololdandash
Defendant
Procedural Posture
Civil Suit / Ruling on Representative Suit and Interlocutory Injunction
Legal Issues
- 1 Whether the suit should proceed as a representative suit on behalf of members of Maji Moto Group Ranch Self Help Group.
- 2 Whether an interlocutory injunction should issue restraining the defendants from utilizing funds held in the group’s bank account pending the hearing of the suit.
Ratio Decidendi
The court found that while the applicants established grounds for the suit to proceed as a representative action, the allegations of misappropriation and wrongful conduct by the defendants were general and insufficient at this interlocutory stage to justify the grant of an injunction. The court noted that the group’s constitution provides a remedy for members to remove office bearers if necessary, and that there was no evidence on record to refute the defendants’ statements that funds were being used for the welfare of the group. Consequently, the court declined to grant the injunction and discharged the interim orders, but allowed the suit to proceed in a representative capacity.
Court Disposition
Application partly allowed and partly dismissed.
Orders
- Leave granted for the plaintiffs to file the suit in a representative capacity on behalf of members of Maji Moto Group Ranch Self Help Group other than the defendants.
- Applicants to cause an advertisement to be published in the Daily Nation within 14 days.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
Civil Suit 252 of 2005
STANLEY KAMAREN RIAMIT…………….…………1ST PLAINTIFF
OMAH M. NAISHO…………………………...…………2ND PLAINTIFF
VERSUS
ELIJAH SIOLOLO
KEMERAI SILIANTOR
JOSEPH TIKAIRA
OLOISHURO NARIYO
SENET OLE RIAMIT
JEREMIAH K. MEIKWAYA
MEIN OLE NANTENYA
OLOONFUBIU OLOLDANDASH………………………DEFENDANTS
RULING
The Applicant applies for an order that:
1. This suit be a representative suit and
2. That an injunction do issue restraining the Defendants from using the funds held in a bank account of the Self Help Group. The Applicants rely on the Supporting Affidavit of the 2nd Plaintiff/ Applicant in which it is stated numerous persons have an interest in the suit.
The orders sought are as follows:
2. THAT this Honorable court be pleased to grant the Plaintiffs/Applicants leave to file this suit in a representative capacity on behalf of members of Maji Moto ranch self help group other than the defendants herein.
3. THAT an injunction do issue restraining the Defendants as directors, trustees and signatories or howsoever of Maji Moto Group ranch self help group wildlife fund by themselves, their agents, servants, employees and/or otherwise howsoever from continuing to withdraw, utilize, disburse, use funds held in the bank account number 12072815 of Maji Moto Group ranch self help group or such other account of Maji Moto Group Ranch self Help group pending the hearing of this suit and or pending further orders of this honorable court.
I see no reason not to grant the request that this suit be a representative suit and make the order sought in prayer 2. The Applicants to cause an advertisement to be published in the Daily Nation within 14 days from today.
The 2nd Applicant in his Supporting Affidavit for an injunction in paragraph 15 and 16 of his Affidavit makes allegations that the Defendants have failed to account for the funds in the Annuals General Meeting. In paragraph 20 the 2nd Applicant states that he is fearful the Defendant may have misappropriated the group’s monies amounting to Kshs 25 Million.
In Reply the 1st Defendant sets out the sources of the Group’s funds and explains on what causes the monies are expended. The Replying Affidavit sworn by the 5th Defendant explains in what way the accounts are operated and the procedure for distributing funds to members. It is said hardship has already been caused due to the interim ex parte injunction order granted herein.
In order to succeed the Applicant must show that they have a prima facie case with a probability of success and that damages are not an adequate remedy. In my view, the general allegation of misappropriation and wrong conduct by the defendant are insufficient to say at this stage that the Defendants are guilty as charged. There is indeed a remedy for the members and that is to remove the defendants from office in accordance with the provisions of the Constitution of the Group Ranch. This was not adduced in evidence but l am informed by both counsel that such a constitution exists.
In any event if the Defendants have misappropriated money then they are personally liable to refund it.
I accept that the funds are being used for the welfare of the Group Ranch members and there is nothing on record to refute their statements that this is so. I do not think that this is a proper case to order an injunction as prayed and therefore decline to do so. The interim injunction is therefore discharged. Costs will be costs in the cause.
DATED and DELIVERED at NAIROBI on 7th July 2005
P.J RANSLEY
JUDGE