George Morara Ntabo v NHIF Savings & Credit Society Limited [2021] KECPT 508 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL

AT NAIROBI

TRIBUNAL  CASE NO. 266 OF 2019

GEORGE  MORARA NTABO ........................…….............................CLAIMANT

VERSUS

NHIF  SAVINGS  & CREDIT  SOCIETY  LIMITED.................. RESPONDENT

JUDGMENT

Vide the  Statement of Claim dated  8. 5.2019,  the Claimant  has moved  this Tribunal  seeking  for judgment  against  the Respondent  as follows:

a. Kshs.65,000/=

b. Interest

c. Costs.

The Respondent opposed the claim by filing a Statement  of Defencedated  22. 7.2019.

Vide  the directions  given  on  14. 10. 2020,  the claim  was  canvassed  by way of written  submission. The Claimant filed his submissions on 26. 10. 2020 while the Respondent did so on 18. 11. 2020.

Claimant’s Case

It is the Claimant’s case that at all times material to the claim,  he was  a member  of the Respondent vide  membership No. 1328.

That on or about 14. 6.2017, he wrote to the Respondent expressing his desire to withdrawal from it. That contemporaneously he requested  for a refund  of his shares  and dividends.

That  upon  receipt  of the Notice,  the Respondent, vide a letter  dated 6. 2.2018, requested  for a period  of two (2) months  to  process  the refunds.  That the said  period  lapsed  without him receiving  the said refunds.  That this prompted  him to issue  a sixty  days’ Notice  through  his Advocate.  That his  claim  therefore  is for a refund  of Kshs. 65,000/= being his  shares  and accruing  dividends.

Respondent’s Case

Vide  its statement  of Defence  dated  22. 7.2019, the Respondent  confirms  that the  Claimant  was  its member  but denied  the fact that  it owed  him a sum of Kshs.65,000/= as alleged. That  whilst  his total  contribution  to the Sacco amounted to Kshs.65,000/=, a sum  of Kshs.20,500/= goes to  non-refundable  share capital.

That  further, the Claimant  did not  follow  the laid down  procedure  whilst  exiting  the society. That  has  such,  this claim  has been  instituted  pre-maturely. It  then cited  the case of  Patrick  Meeme Lunge –vs- NHIF  Sacco Society  Limited [2019]eKLR,andMuriithi  Mumeu –vs- NHIF Sacco Society Limited [2019]eKLR.

Issues  for determination

This claim has presented  the following  issues for determination:

a. Whether  the Claimant  has established a proper  basis  to warrant  an order  for refund  of Kshs.65,000/=.

b. Who should  meet  the costs  of the claim.?

Refund  of deposits

At the outset, we  have  to give  a distinction  between  shares and  deposits. Shares  Section  2 of  the Co-operative  Societies  Act  (Cap 490) Laws of Kenya defines  a share  to mean

“....the amount  represented  by a members  portion  in the equity  of a society  as a co-owner.”

It follows  therefore  that a share capital  is that portion  of a members contribution  which  goes towards  capitation  of the society. It is  non-refundable. It  follows  therefore  that the Claimant  is not  entitled  of Kshs.20,500/= being  his share capital  in the Respondent.

As regards the balance  of Kshs.44,500/= we  note that  the Claimant  has not  denied  the same  being  due  and owing. We thus find  that the same  is refundable.

Issuance  of Notice

The Respondent  contends that the instant  claim  is pre-mature  as  the claimant  did not  issue  the mandatory  Notice  of 60 days. We have  perused  the Claimant’s  letter  dated  14. 6.2017. It is addressed  the Respondent’s manager. The pertinent  part reads:

“ Please  take note; I shall  cease to be  a member of  NHIF Sacco  with  effect from  15. 8.2017. ” We have  also perused  the Claimant’s  demand  letter dated  13. 8.2018. further,  we have  perused  the Respondent’s  letter dated  6. 2.2018. For  all intends  and purposes, we note  that vide  this letter,  the  Respondent  acknowledged  the Claimant’s  intention to withdraw from it  and even went  ahead  to make  proposals on how to  do so.  It thus  cannot  be said that  the Claimant  has not shown  statement of interest  to resign.

Conclusion

The upshot  of the foregoing  is that  we enter  judgment  in favour of the Claimant  and as  against  the Respondent  for Kshs.44,500 with costs  and interest  at court rates.

The Orders  herein  to apply  to CTC.NO. 267/19 to the extent  that  judgment  in this claim  is entered against  the Respondent  for Kshs. 651,580/= plus  interest  and costs  at court  rates.

Judgment signed, dated and delivered virtually this 4th day of  March,  2021.

Hon. B. Kimemia  Chairperson    Signed  4. 3.2021

Mr. P. Gichuki    Member   Signed  4. 3.2021

Mr. B. Akusala    Member   Signed  4. 3.2021