Ngugi v Chamber Unity Savings & Credit Co-operative Society Limited [2024] KECPT 1522 (KLR)

Ngugi v Chamber Unity Savings & Credit Co-operative Society Limited (Tribunal Case 102 (E055) of 2022) [2024] KECPT 1522 (KLR) (26 September 2024) (Judgment)

Neutral citation: [2024] KECPT 1522 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 102 (E055) of 2022

BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members

September 26, 2024

Between

Esther Mumbi Ngugi

Claimant

and

Chamber Unity Savings & Credit Co-operative Society Limited

Respondent

(Coram: Hon. B. Kimemia- chairperson, Hon. J. Mwatsama- Deputy chairperson, Hon. B. Sawe- Member, Hon. F. Lotuiya- Member, Hon.P. Gichuki- Member, Hon. M. Chesikaw- Member and Hon. P. Aol- Member.)

Judgment

1. The matter for determination is a Statement of Claim dated 23rd December 2021. In the Statement of Claim, the Claimant claims that she was a member of the Respondent. She avers that sometime in 2014, she was given a loan of ksh. 500,000/-, which she was to be repaid at Ksh. 17,200/= per month. According to the claimant, he repaid the loan faithfully until April 2018 when the Respondent intimated that she was in default and that they were starting to realize from the collateral. The Claimant also avers that he has not been given any statement. The Claimants are aggrieved and prays for:a.A mandatory order that the Respondent furnishes the Claimant with the Legal Charge instrument created against Title No. RUIRU/RUIRI EAST BLOCK 2/7560 and also the loan repayment account and/or statement for the period between December 2014 to date.b.Perpetual injunction restraining the Respondent its agents and/or servants from selling, alienating and/or in any other matter interfering with the collateral and/or title to land parcel No. RUIRU/RUIRI EAST BLOCK 2/7560 pending the determination of this suit.c.General damages.d.Costs and interest of this suit.The Claimants filed a witness statement and a List of Documents in support of her claim.

2. The Respondent entered appearance and filed a Response to the Claim dated 9th June 2022. In their response, the Respondent denies that the Claimant is not in default, and aver that the Respondent is in default and that her loan stands at Ksh. 822,626. 96/-.

3. During the hearing the Claimant testified and as well as the Chairman of the Respondent.

4. In her testimony, the Claimant testified that in 2016 she sought to withdraw from the Respondent but they asked more money that she thought she owed. On cross-examination, she said that she had not paid any money since 2017.

5. The Respondent’s chairman testified that the office is still operational but closed shortly during covid but the members could still pay using the paybill.

6. The court ordered the parties to file their submissions, but only the Respondent had filed at the time of writing this judgement.

7. According to the Respondent, the Claimants claim has been overtaken by events. That the Claimant in her prayers, sought among other things an injuction pending the determination of the suit. That this prayer has lapsed. The Respondents also submitted that the Claimant is still indebted to the Respondent and hence the Respondent can effect the security.

ANALYSIS 8. The question before this Tribunal is whether the Claimant is entitled to the relifes sought. It is not in dispute that the Claimant was a member of the Respondent. It is also not in dispute that the Claimant applied for and was awarded a loan by the Respondent, a loan which she admits she is yet to clear.

9. The Claimant’s 1st prayer is a mandatory order to the Respondent to furnish her with the charge document, and a loan account/statement for the period between 2014 to date. Under the Cooperative Societies Act, members have a right to information about the society and also about their accounts. The power in a cooperative society belongs to the members, and this power is then delegated to the management of the Cooperative society. When a member takes a loan, it is her right to get all the information that they need with regards to the loans and the repayment of those loans.

10. The Claimant claims that when she wanted to clear her loan she was given amounts that she did not agree with. The second time she went to the Respondents office she found it closed and relocated. This is a fact that the Respondent indeed confirmed that they closed shortly. The statement that the Respondent supplied does not capture the repayments that the Claimant claims she paid in 2016 and 2017.

11. The second prayer is for a perpertual injunction pending the determination of the suit. This prayer, is therefore spent.

12. The third prayer is a prayer for general damages. It is trite law that general damages must be specifically pleaded and proved. This was note done and hence this prayer fails.

13. The Upshot is that we find the Claimant’s Claim partly merited, and we make the following orders:Judgment is entered in favour of Claimant against Respondent in the following terms:a.The Respondent to supply copies of the charge document against Title No. Ruiru/Ruiru East Block 2/7560 as well as the Claimants loan statements capturing the repayments made by the Claimant in 2016 and 2017, within 14 days of this judgement.b.Each party to bear their own costs.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 26TH DAY OF SEPTEMBER, 2024. HON. B. KIMEMIA - CHAIRPERSON SIGNED 26. 9.2024HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 26. 9.2024HON. BEATRICE SAWE - MEMBER SIGNED 26. 9.2024HON. FRIDAH LOTUIYA - MEMBER SIGNED 26. 9.2024HON. PHILIP GICHUKI - MEMBER SIGNED 26. 9.2024HON. MICHAEL CHESIKAW - MEMBER SIGNED 26. 9.2024HON. PAUL AOL - MEMBER SIGNED 26. 9.2024Tribunal Clerk JemimahNo appearance for parties.Judgment delivered in absence of parties.