Angela Akinyi Okello v Lucia Muthoni Meria [2021] KECPT 593 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI

TRIBUNAL  CASE NO.534 OF 2018

ANGELA  AKINYI OKELLO...........................................DECREE HOLDER

VERSUS

LUCIA  MUTHONI MERIA........................................JUDGMENT DEBTOR

RULING

Vide the Application  dated 1. 11. 2019,  the Judgment  Debtor  has moved  this Tribunal  seeking  for Orders  inter alia:

a. That  this  Application  be  certified as urgent and be heard  expeditiously;

b. That this  Honourable  Tribunal  do hereby  issue orders  for payment  of the decretal  sum  by the Judgment Debtor  by monthly  installments  of Kshs.10,000/= with effect  from  5th  November  2019 and thereafter on or before  the 5th  day of each  succeeding  month  until payment  in full;

c. That the parties be at liberty  to apply  for such orders  as may be expedient  pending full  payment  of the decretal sum; and

d. That the  costs  of this Application  be provided for.

The Application is supported by the grounds on its face and the  following Affidavits:

a. Supporting  Affidavit  sworn  by the Judgment Debtor  on  1. 11. 2019; and

b. Supplementary  Affidavit  sworn by  the said Judgment Debtor  on  23. 11. 2020.

The Decree  Holder  has opposed  the Application  vide the  Replying  Affidavit  sworn by herself  on 13. 11. 2020.

Vide  the  directions  given  on  19. 10. 2020,  the Application  was canvassed  by way of  written submissions.  The Judgment Debtor  filed  hers  on  24. 11. 2020 while the Decree Holder did so on 25. 11. 2020.

Judgment  Debtor’s  Contention

Vide  the instant  Application, the  Judgment  Debtor  prays to be allowed  to liquidate  the  decretal  amount  on  installments  on account  of the fact that  she is  not gainfully  employed  and that she  is experiencing  diminished  income following  the collapse  of her  business. That  she currently relies on  contractual jobs  from educational institutions  for subsistence.

Decree Holder’s Case

The Decree  Holder has  opposed  the Application  on  grounds  that the Judgment  Debtor  is not keen  on  settling  the entire debt.  That  if  she had  good faith  and/or  believed  in what she  prays  in the instant Application, she should have  been  making the said  monthly  installments  since November, 2019 when she  filed the instant Application. That  she has never paid  any penny  since  that date.

Judgment  Debtor’s Supplementary  Affidavit Sworn  on  23. 11. 2020

Vide  this Affidavit, the Judgment Debtor has blamed  covid-19  for failure  to  settle  the decretal  amount  by way  of installments. That because  of this,  she is praying  to be allowed  to  settle  the decretal  amount  by way  of  monthly  installments  of kshs.5000/=.

Issues  for determination

We have framed  the following  issues  for determination

a.  Whether  the Judgment  Debtor  has laid a proper basis  to be allowed  to  settle decretal  amount by  way  of installments;

b. Who should  meet the  cost of the Application?

Settlement of  Decree  by way of  installments

Order 21 Rule  12 of the Civil  Procedure  Rules is the legal  framework  for settlement  of a decree  by way  of installments.  It provides thus:

“ 1. Where   and  is  so far  as a decree  is for payment  of   money,  the court  may  for any sufficient  reason  at the time of  passing the decree order that  payment  of the amount  decreed  shall be postponed  or shall be made  by installments.....

2. After  passing of any  of such  decree,  the court may on the Application  of the  Judgment  Debtor  and with the consent of  the Decree- Holder  or without  the consent  of the Decree Holder  for sufficient  cause  shown, Order that  the payment  of the  amount decreed  to be  postponed or be made  by installments  on such terms  as to the payment  of interest, the attachment  of the property of the Judgment – Debtor  or  the taking  of security  from him,  or otherwise as it  thinks fit.”

It is  thus apparent  that the Tribunal  has power  to Order  for payment  of decretal  amount  on installments. This  power  is discretionally. This was  the holding  of the court  in the case of KTK Advocates – vs-  Baringo  County  Government[2018] eKLR. In the pertinent  part,  the court held that:

“ It  is clear  from  the above   rules  that although  the court may  allow settlement  of a decree  by  installments, that is at the discretion  of the court and as  usual, it  must be  exercised  judicially  and only in circumstances  that justify  exercise  of discretion.”

While  referring  to the decision  of the court  in the case of  Keshval Jethabhai &  Brothers  Limited – vs-  Saleh  Adbul [1959] EA 260,the court  in the KTK   case  said this about  the principles  to  be considered  while considering  an  Application  of this nature.

“ In the  case of  Keshval Jethabhai  &  Brothers  Limited  - vs-  Saleh  Abdul [1959]EA 260,the court  stated  the principles  that should  apply  in considering  such  an Application,  namely; each  case  must be considered  on its  own merit; mere inability to pay  in  full  at once  is not  sufficient  reason  for  exercising  the discretion,  the debtor  should show  Bonafide  by arranging  prompt  payment  and that though  hardship may be  a factor,  the court has  to consider  whether  indulgence  should be  given  to the  debtor  without  prejudice  to the decree  Holder.  The above  decision  shows  clearly  that  it is for  the judgment  debtor  to show  cause  and justify  indulgence. “

In the  case of Hildegard Ndelut – vs-  Letkina Dairies Limited &  Another [2005] eKLR, the court  held:

“ a judgment  creditor  is entitled  to payment  of  the decretal  amount,  which  he should receive  promptly  to  reap  the fruits  of the  judgment. the judgment debtor  might  genuinely be in a difficult  position  in paying the decretal  amount  at once.  However,  he has to show  seriousness in paying  the amount. In that  event,  he should  show his  bonafides for arranging  for  fair payment  proposals to liquidate  the amount.”

We have  extensively  quoted  the foregoing  authorities  so as to  set out,  in no uncertain  terms, the operative  principles  to be  applied  in considering  the current  application. From  these decisions,  we deduce  the following:

a.   That the  Tribunal  has jurisdiction  to Order  for payment  of a decretal  Amount  by installments.

b. That before  the Tribunal  can exercise  the said  jurisdiction  the Judgment  Debtor  must satisfy  the following conditions:

(i) Show bonafides by arranging  prompt  payment

(ii) The Decree Holder  will not suffer  any prejudice

(iii) She  is genuinely  in a difficult  position

(iv) Show  seriousness  in payment  of the said  amount.

The question  abounds  therefore as to whether  the current Application  meets  these conditions.  Our answer  is in the negative. The  judgment  debtor  has neither  shown  seriousness to pay the decretal  amount  nor shown  bonafides  to settle  the same promptly. Whilst  the instant  Application  was made  on 1. 11. 2019,  the Judgment Debtor  has not made any effort  to settle it even in the lowest  of figures.  There is thus no guarantee that the Judgment  Debtor  will  make  payment  even if she is allowed  to do  so in installments.  We  say so taking  into account  the fact that  the monies sought to  be recovered  were deducted from a  person  who, out of good faith, guaranteed   the Judgment Debtor  the said loan. She  did not  benefit  from the loan at all. She cannot thus  be held  at ransom by  the Judgment Debtor’s machinations.

Conclusion

The upshot  of the foregoing  is  that we do not  find merit  in the Judgment Debtor’s  Application  dated 1. 11. 2019 and hereby  dismiss  it with costs  to the Decree  Holder.

RULING  SIGNED,  DATED AND  DELIVERED VIRTUALLY  THIS  28TH  DAY OF JANUARY, 2021.

HON. B. KIMEMIA   CHAIRPERSON                  ................................

MR. B. AKUSALA   MEMBER                               .................................

MR. R. MWAMBURA   MEMBER                         ..................................