Kodeka Nicholus Odeko v Menger Solutions Savings & Credit Co-operative Society Limited [2020] KECPT 84 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT KISUMU

TRIBUNAL CASE NO. 514 OF 2017

KODEKA NICHOLUS  ODEKO.........................................................CLAIMANT

VERSUS

MENGER  SOLUTIONS  SAVINGS & CREDIT

CO-OPERATIVE  SOCIETY  LIMITED.........................................RESPONDENT

RULING

We have carefully considered the submissions of both parties and all the orders issued on 14. 11. 2019. On that date, the Judgment Debtor was brought under a warrant of arrest and confirmed that he had recorded a consent previously at the Police Station.

The consent  was  brought to the attention  of the Tribunal  on the same  date and  confirmed  by the judgment  debtor himself  before  the Tribunal.

We have  seen the consent  dated  6. 11. 18 signed  by both  parties. We  have also  seen  the cheque  number  000049 for Kshs.40,000. 00 returned  due to insufficient  funds. This  is the same cheque that was issued  in the presence  of the Tribunal  on 14. 11. 2019 and basis  of  which  the  Judgment Debtor  was released and the warrant of arrest  suspended till  22. 11. 2019.

On 22. 11. 2019,  the judgment debtor  failed to appear  in court  prompting  re-issuance  of the warrant  of  arrest.  It is therefore  clear that  the warrant  of arrest  was properly issued  by the  Tribunal  against the  said Fredrick  Marembo, the Judgment Debtor  herein and who is  also  the Chairman  of the Respondent.

We have noted  the submission  of the advocate  of the Judgment Debtor on the execution  against  the judgment debtor  in person  and  that the averment  that execution  by way  of  warrant  of arrest  under  section  38  of  the Civil  Procedure  Act (cap 21) was not  followed.

We have  also  noted  the response of the Judgment Creditor  confirming  that indeed  the judgment  debtor  is  the chairman  of the said Sacco and that he entered  into an agreement  with  the judgment creditor on the mode  of settlement   of the decretal  amount.  The judgment  debtor  in the presence of  the Tribunal issued  the said  bounced cheque and was set  at  liberty after  promising  to clear  the installments  of Kshs.36,323. 00 on or before  22. 11. 2019.

The provisions of section  28  (3)  of the Co-operative Societies  Act (Cap 490) Laws of Kenya  is clear that  the committee  shall be the governing body of the  society  and  is  vested  with powers  to  enter into contracts, institute  and defend suits and other legal  proceedings  brought in the name  of or against  the Co-operative  Society  and do all other  things  necessary  to achieve  the objectives  of the Co-operative  Society.

The Judgment  Debtor  in his capacity as the Chairman  of the  management  committee  is therefore mandated  and obligated  under section  28  (3)  of the Act  to act on behalf  of the Respondent. The judgment debtor entered into an agreement/consent  on the mode of payment/payment  plan  with the  Judgment Creditor and indeed  confirmed  that position  before  the Tribunal. He  went ahead  to draw  a cheque  in further pursuit  of the agreement/consent  in favour  of the Judgment  Creditor. The Judgment Debtor therefore  should  not be seen  to avoid  responsibility  for  the Respondent  herein.

The Judgment  Creditor  is owed  by the  Respondent, a fee  acknowledged  by the  Judgment Debtor/Chairman  of the  Respondent. The Judgment  debtor  has on previous occasions,  been arrested  and committed  himself  to pay  any amount  owed  to  the judgment  creditor. In the  circumstances,  we thereof find  the submissions  by the advocate  for the judgment debtor  not  merited  and  without  any  standing  and/or  basis under the law. We therefore  dismiss  the  Applications  for lifting  of  warrants and find that  the warrant  of  arrest  issued  on  22. 11. 2019 was issued  procedurally  against  Fredrick  Marembo, Chairman  of the Respondent. We find that  section  38 of  Civil Procedure Act is  not  applicable  in the circumstances owing  to the  fact that  this is  a Co-operative  Society  governed  by  the  Co-operative  Societies  Act.

We find  that the  Judgment Creditor  has incurred  expenses  for arrest  of  the Judgment Debtor as per the documents  filed  on  20. 11. 2019 that is, arrest  expenses  for  6th  November  2018, amounting  to  Kshs.10,000. 00/=, arrest  expenses  for  13. 11. 2019 amounting  to  Kshs.40,000. 00/=, unpaid  cheque  commission  of kshs.2400/=. Total  expenses  as per the  application  filed  on  12. 11. 2019 is Kshs.47,400.

We have  noted  the receipts  enclosed  therein and  award  the said expenses.  In total  Kshs.47,400/= plus  costs  for  arrest for  12th February  2020 assessed  at Kshs.10,000/-. Total  accrued  and assessed  expenses  is  Kshs.57,400. 00 plus  the  balance  of the decretal  amount  being  Kshs.228,970. 80/=. The warrant  dated  11. 11. 2019 is  for  Kshs.393,970. 80/= less  acknowledged received  amount  of Kshs.165,000. 00/=. Balance  is  Kshs.228,970. 80/= plus  assessed  cost of  Kshs.57,400/= total  Kshs.286,370. 80/=.

The judgment debtor  has not made  any proposals  on payment  of the  decretal  amount. We  note  that he has  adamantly  neglected  to  offset  the decretal  amount. He has made previous  commitments and proposals  which  he has not  kept  and has  consistently  defaulted. The judgment  debtor  even  issued  a cheque  in the presence  of the  Tribunal  which was  refused  due to  insufficient  funds.

The interlocutory judgment was entered on 11. 10. 2017 and the basis  of the claim  was refund  of  deposits.

We find  that the Judgment  debtor  has not been honest  with his dealings  and  commitment  to pay  the decretal amount.  The judgment  creditor  is entitled  to the fruits  of his  judgment  and the  continued  delay  to offset  the decretal  amount  is  a continued  injustice in  his  part especially  the judgment debtor  having issued  a cheque  knowing  very well  that  there were no  sufficient  funds  to  pay  against  the amount  drawn.  In the circumstances, owing  to the above  conduct, we  commit the judgment debtor  to civil jail  for a period  of three (3)  months,  the judgment creditor  to pay subsistence  allowance.

Read and delivered in an open court this 13th day of February 2020 at Kisumu.

In the presence of ;-

Claimant                     :         Present, Nicholus Kodeku

Respondent                 :         Fredrick  Marembo, Chairman  of the Respondent

Court Assistant          :         I. Buluma

Hon. B. Kimemia       -         Chairman                   Signed

Hon. F. Terer              -        Deputy Chairman      Signed

P. Swanya                   -        Member                      Signed