Isaiah Ikindu Mwania & Collins Muendo Musyoka v Joseph Kitheka, Cyrus Muatha Onesmus Mayu, Boniface Mburu & Kinatwa Co-operative Savings & Credit Society Limited; Dancun Kyalo, Stage Manager, Afya Center & Fredrick Muli Mbiti,Stage Manager Kitui (Interested parties) [2021] KECPT 502 (KLR)

REPUBLIC OF KENYA

IN THE COOPERATIVE TRIBUNAL AT NAIROBI TRIBUNAL CASE NO. 98 OF 2021

ISAIAH IKINDU MWANIA...............................................................1ST CLAIMANT

COLLINS MUENDO  MUSYOKA..................................................2ND CLAIMANT

VERSUS

JOSEPH KITHEKA ...................................................................1ST   RESPONDENT

CYRUS MUATHA .......................................................................2ND RESPONDENT

ONESMUS  MAYU.......................................................................3RD RESPONDENT

BONIFACE  MBURU.................................................................4TH RESPONDENT

KINATWA CO-OPERATIVE SAVINGS &

CREDIT SOCIETY LIMITED..................................................5TH RESPONDENT

AND

DANCUN KYALO, STAGE MANAGER

AFYA CENTER…..............................................................ST INTERESTED PARTY

FREDRICK  MULI MBITI,STAGE

MANAGER KITUI........................................................2ND INTERESTED PARTY

RULING

1.  The Notice  of Motion  dated  9. 2.2021  and filed  on  10. 2.2021 is  up for  determination. The Applicant  herein  seeks  the following Orders.

(i)   Spent

(ii)  Spent

(iii) That no management resolutions should be effected without properly constituted management committees and with proper notification of all committee members.

(iv)  That pending  the hearing  and determination  of this matter, no vehicle belonging  to  any SACCO  member nor new  members awaiting  ratification  at the Annual General Meeting should be  stopped/suspended from carrying  out business  in the Sacco by  any Sacco  official  or manager.

(v)    That  all  staff get their  payments pending  the hearing  and determination  of this suit.

(vi)   That  no driver duly  authorized  by the KINATWA SACCO members should  be  suspended/stopped  from doing  so until  the determination  of this  matter;

(vii)   Cost  of this Application be in the cause.

2.  The Application  is based  on the following  grounds:

(i)   That  there  has been  an ongoing  dispute  between the committees of the KINATWA  SACCO   which has affected  the operations  of the SACCO.

(ii)  That  the Respondents have been  issuing  letters  of suspension  against  some officials  and against  some members  which  is contrary  to the SACCO  by-laws.

(iii)  That  the Respondents  have also  been issuing  instructions  to the  1st  interested  parties  not to  allow  the vehicles  belonging  to some members  of  the SACCO  including  the applicants  herein  from carrying  passengers  at the designated  SACCO  picking  and dropping  bays.

(iv) That  the SACCO   special  general  meeting  has not  been held  and thus  the Respondents are continuing  to harass  the members  without  any formal  resolutions  in place.

(v)   The  Respondents  will not suffer  any prejudice  that if  the said orders  are made  and the matter  proceeds  for hearing.

(vi)  It is in  the interest  of justice  and fairness  that the orders  sought  herein  be granted.

3.  The Application  is further  supported  by  the Affidavit  of Isaiah  Ikindu  Mwania  the  1st  Applicant  who reiterated the grounds  on the face  of the Application  and seeks  for orders ‘protection’ as the  Respondents have frustrated  their transport  business.

The  Applicant  avers there is  harassment, intimidation and  cruel  treatment by the Respondents which  affects their  business  and cannot repay  their loans  in good  time.

4.  The Respondent in opposition to the Application filed Replying Affidavit sworn by Joseph Kitheka on 16. 3.2021 filed on 20. 5.2021, 1st Respondent is the chairman of the 5th  Respondent  herein.

He avers  they  act  according  to the guidelines  given  by NTSA.

That  they summoned  the Applicants  herein  vide  letter  dated 12. 2.2021 pursuant  to complaints  they had  received  from some  customers  and drivers  of other motor vehicles  within the Sacco.

That  they have not  harassed  the Applicants  but  indeed  the Applicants  are not acting  in good faith having  worked  with former officials  of the 5th Respondent.

The  1st Respondent  avers  that at the time  of the lodging  the case  the Applicants  motor vehicles had been  allowed  back to  Kitakwa  Sacco fleet  (paragraph  13 Replying Affidavit).

They  proceeded  to state  the Applicant’s application  lacked  merit  and that  the same  ought  to be dismissed.

Further Affidavit  was filed  by  2nd  Applicant  on 1. 4.2021.

5.  The parties  were ordered  for the Application  to be canvassed  by way  of written submissions  on 17. 3.2021.

The claimant  filed  their submissions  dated  1. 4.2021 on even date  and Respondent  filed  their submissions  dated  11. 3.2021 on  12. 4.2021.

The claimant  submitted  that they  are members  of 5R Kinatwa  Sacco  and  operate  matatu  business  the Respondents  have been  harassing  them through  intimidation not allowing  them to  carry passengers  at designated  Sacco stages.

The Applicants  further  aver there have been  disputes  between  the  committees  in the Sacco  which  resulted   to lack of  quorum for decision  to be  effectively  made.

6.  The Respondents  in their submissions  aver  the only issue  for determination  is whether  the Respondent  have defied  the interim  order  granted pending the hearing and  determination  of the Application. they  state the Claimant  ought  to have  stated  the specific  motor vehicles  which have  been  denied  access  by  the Kinatwa  Sacco and  denied  ferrying  passengers from stages  managed  by the Sacco.

The Respondent  aver the Applicants  have not  demonstrated  which particular dates  the Respondent  expressly contravened  the said order.

They stated  the Tribunal  is being called  upon  to  speculate  that Claimant’s  motor vehicles  exist.

Further  the Respondent  state the averments  in their Replying Affidavit have not  been contravened through  further affidavit.

7.  We  note that the applicants went into  great lengths  to submit  on Annual General  Meeting and Special  General Meeting to be held  and  the Respondents  responded  to the same.

Prayer for of the  Application  calls  for pending  the hearing and  determination  of this matter  no vehicle  belonging  to  any Sacco member  nor new members  awaiting  ratification  at the Annual General Meeting should  be stopped/suspended  from carrying  out  business  in the Sacco  by any Sacco official or Manager.

We note   the applicant’s  Supporting  Affidavit Paragraph 7  states  there  was to  be a Special General  Meeting  on 16. 1.2021 but the  same  was cancelled.

He avers  the meeting  was cancelled  because  of the disputes  amongst the officials.

The Respondent in their  responses  Replying affidavit  state  in paragraph  14  that ..” there  is an inquiry  into the  affairs  of kinatwa  Sacco  ordered  by  Commissioner  of Cooperatives  into the  alleged  malpractices  committed  by the former  officials ... and as  such all  Special  General Meeting  and Annual General Meetings  were suspended  to  await  outcome  of the inquiry..”

8.  We have  read and  considered  the application  the grounds  relied  upon by both  parties  and the submissions  and the  key  question  for determination  is whether  the application  is merited.

9.  We  note  the Respondent  have claimed  that none of  the Claimant’s  motor vehicles have been  barred  and or not given  opportunity  to transact  business  as alleged.

10.  Special General Meeting

The Respondent  have  stated  there is an inquiry  ongoing however,  no evidence  has been  placed  before  the Tribunal  stopping  us from  making  orders  of a Special  General Meeting  which  may  be a useful  tool in  compromising  the situation  pitting  against  the parties.

11.  A court  or Tribunal  may  make an  order  for prohibition  in conditions  where  they feel  justifiable  in the circumstances.

A prohibition order  is usually  granted  for a specified time  from  or until  the occurrence  of a certain  action.

12.  For the reasons  above we are  satisfied the Claimant  are at  risk  of losing  their livelihood  which  would  cause  financial  burdens  to them if the  prohibition  orders  are not granted.

On issue  of the Special  General  Meeting- it is imperative  for the Sacco  to have  a meeting Special  General  Meeting  to enable  all members  raise  concerns  in the meeting, resolutions passed  for the success  of the Co-operative  whose  aim  is to serve  its  members.

For  the foregoing reasons, we find  merit  in the Notice of  Motion  dated  9. 2.21and grant  the following  orders:

1.  An order  for prohibition  do issue  directed  at the Respondents  and Interested Party to allow the Claimant’s  motor  vehicles  to operate  and carry  out  business  in the Sacco  pending Special General  Meeting.

2.  We Order  for a  Special  General  Meeting to be  scheduled  and held  within  60 days  hereof by the current  officials in the office to be supervised  by the Commissioner  Co-operatives  Draft.

3.  Parties  to file and  serve  witness statement  and documents  within  30  days herein.

4.  Mention for  Pre-trial   on  5. 7.2021.

Ruling signed, dated and delivered virtually this 27thday of May, 2021.

Hon. B. Kimemia                  Chairperson                Signed      27. 5.2021

Hon. J. Mwatsama              Deputy Chairperson  Signed      27. 5.2021

Mr. P. Gichuki                       Member                       Signed      27. 5.2021

Tribunal Clerk                       Leweri

Miss  Luchubereri holding  brief for Mwangi  for 3rd to  9th  Interest parties

Miss  Luchubereri  for the Claimant: present

J.K.  Mwalimu  for Respondent: Present

Miss Aluda for Applicant/Claimant: Present

Mention on 7. 6.2021 for further  direction on the  Applications pending.

Hon. B. Kimemia      Chairperson                Signed      27. 5.2021