Michael Mubea Ndurumo v National Hospital Insurance Fund Sacco Society Limited [2021] KECPT 280 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI

TRIBUNAL CASE NO.276 OF 2020

MICHAEL  MUBEA  NDURUMO...........................................................CLAIMANT

VERSUS

NATIONAL  HOSPITAL  INSURANCE  FUND

SACCO  SOCIETY   LIMITED............................................................RESPONDENT

RULING

1. The Application  for determination  is one  dated  8. 4.2021 and filed  on even date.

The  Applications seeks  for Orders:

a. This Application  be certified  as urgent  and heard  ex parte  in the first  instance.

b. This Honourable  court be  pleased  to grant  leave  to the  Respondent to liquidate  the outstanding  decretal  sum of  kshs.584, 250/- by paying  a sum  of Kshs.50,000/= per month  until  payment  in full.

c. The interest  rate  be renewed  from  14% to  12%.

d. The Claimant  be restrained  from levying  execution  as long  as the  Respondent  pays  the proposed  monthly  installments.

2.  The same  is premised  on the grounds  on the  face of  the Application  and supported  by the Affidavit  of Sophie  Otiu  the Respondent’s  Manager  to  wit she averred  that.

Judgment  was entered  in favour  of Claimant  as against  the Respondent on 3. 3.2021.

That  Notice  of Entry  of Judgment  is  for  a sum  of Kshs.384,250/=  with  14% interest  per annum.

That  the interest  rate  of  the Respondent  is  governed  and  regulated by  statute  capped  at 1% per annum  that is,  12% per annum.

The  Respondent  By-laws  provide  that Share  Capital  of  Kshs.20,000/= cannot  be refunded  but  transferred  to another  member  of the Sacco.

That there  are  50  files before  the Co-operative  Tribunal  against  Respondent  seeking  refund  of shares  and Respondent  is unable  to keep up  with the demands  of members withdrawing  from the Sacco.

He further  averred  Respondent is  willing to  liquidate  the amount  by installment  of Kshs.50,000/= payment  in full.

3.  The Claimant’s filed  Grounds  of Opposition  dated  20. 4.2021  in opposition  of  Application  dated  8. 4.2021and stated one, the  Application  is an  abuse of  the court process.

That  the Supporting  Affidavit  of Sophie  Otiu does not  make  a case  to warrant  ordering  sought.

The Respondent  continues  to offer  credit  to its  members  and thus  cannot claim  to be unable  to pay  the  decretal  sum.

4. The Claimant  further  filed a  Replying  Affidavit  dated  20. 4.2021  filed  on 10. 5.2021 and stated.

That  the Application  was  meant  to delay  justice.

That  he had withdrawn  from the  Sacco  since  25. 7.2018 and since  then the Respondent  has not  paid  him his  cash.

That  the 14% interest  is what  he pleaded  and  is what  is the  interest  chargeable  at the  Tribunal.

5.  Parties  were ordered  to file  written  submissions  to dispose  off the Application  as per  directions  given  on  8. 4.2021.

The  Claimants  filed  their submissions dated  15. 6.2021filed on  18. 6.2021.

6.  Having analyzed  the set of  written  submissions,  Affidavits  from all  parties  the issues  are:

Issue One:

Whether  the court   can grant  orders  for installment  payment  of decretal  sum.

Issue Two:

The  interest  rate  to be used.

ISSUE ONE:

Whether  the court   can grant  orders  for installment  payment  of decretal  sum.

The  Applicant  requests  court for orders  to pay  the  decretal  sum  in installments  of Kshs.50,000/=.

The Applicant  relies  on Section  1A,  1B,  and 3A of the  Civil  Procedure  Act Cap 21.

The Claimant  states  the same is  an abuse of  the court  process.

7. The Application  calls  for the  Court’s  discretion  in its  determination.  There are  some  known  principles  to guide  the court  when  exercising  discretion.

One:  This  is an equitable  remedy  available  at  a  deserving  party.

Two:  The same  is made  on a case  to case basis.

Three:  Reasons  for application  in this  instance installment  need to be  reasonable  to  the satisfaction  of the court.

Four:  prejudice  suffered  by  the other  party if  leave   is  granted  to pay  via  installment.

The  court entered  judgment  as against  the Respondent.

It  should not  be  the  court’s  business  how the same  is paid.  There are  clearly  laid out  procedures  to which  Claimant  can follow  to ensure  payment  of his decretal  sum.

No justifiable  reasons  have been  set out  by the  Applicant’s why  the decretal  sum should  be made  via  installment.

The  Claimant  rightly  withdrew  from  the Respondent  membership in  2018 and if  at all the Respondent  were  keen  on  payment  they would  have done  it then.

It  is almost  3 years  since  and  Claimant  has  to  enjoy  the fruits  of his Labour.

8.  Issue Two:

It is  law that  the court  rates  are held  at 12% per annum.

The Claimant  seeks  to have the  interest  rate  of 14%renewed  to 12%.

They claim  their rates  are at  1% per month culminating  to 12% per annum.

To this  end we shall  use the  court rates  which  stands  at 12% per annum.

9. Without  much further  ado  the  Ruling  of this Honourable  Tribunal  is that:

1.  Prayer  one –Spent

2.  Prayer  Two – Fails

3.  Prayer Three -  in the following  terms,  judgment  confirmed  at Kshs.584,250/= , any further  interest  chargeable  from  the date  of Ruling  will be  at 12% per annum.

4.  Prayer  Four – Fails.

5.  Costs  of the Application  assessed  at Kshs.10,000/= to be  paid  to the  Claimant  by the  Respondent.

RULING SIGNED, DATED AND DELIVERED VIRTUALLY  AT NAIROBI THIS 29TH  DAY OF JULY, 2021.

Hon. B. Kimemia                  Chairperson                Signed      29. 7.2021

Hon. J. Mwatsama              Deputy Chairperson  Signed      29. 7.2021

Mr. Gitonga Kamiti             Member                       Signed      29. 7.2021

Tribunal Clerk                       Charles Maina

Omangi  Gichane for Respondent

Wanja  Mungai  holding brief for  Kimondo for Claimant.

Hon. B. Kimemia                  Chairperson                Signed      29. 7.2021