P.C.EA Kayole Regulated Non-Wdt Sacco Society Limited v Rugami [2024] KECPT 902 (KLR)

P.C.EA Kayole Regulated Non-Wdt Sacco Society Limited v Rugami (Tribunal Case 314/E420 of 2022) [2024] KECPT 902 (KLR) (27 June 2024) (Ruling)

Neutral citation: [2024] KECPT 902 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 314/E420 of 2022

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

June 27, 2024

Between

P.C.EA Kayole Regulated Non-Wdt Sacco Society Limited

Claimant

and

Irene Wairimu Rugami

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)

Ruling

Ruling of the tribunal Facts of the case 1. The Respondent is a member of the Claimant Society Number 5776 and around October, 2020 applied for a loan facility of Kshs 1,800,000/=. The Claimant approved a facility of Kshs 1,400,000/= which was to be paid in 60 equal instalments of Kshs 23,334,00/=.

2. The Respondent paid Kshs 144,823/= to service the loan and defaulted for 6 months necessitating the Claimant to call the loan to be paid in full. As at the date of filing this claim on 4th July, 2022 the total accrued balance after, deducting the Respondent’s deposits of Kshs 608,020/= stood at Kshs 715,418/=.

3. To recover that amount, the Claimant filed this claim seeking among others:a.The sum of Kshs 715,418/=.b.Cost of the suit and interest until payment in full.c.Any other relief so deemed appropriate by the Honourable Tribunal.A lot of interventions have been made on this matter by this Tribunal to help with settling the matter in a quick judicial way for both parties. One of such interventions, was the one made on 18th October, 2023 that allowed the Respondent to be issued with one title deed to enable her get a facility to liquidate the decretal sum.What is the subject of this ruling, is prayer number (b) in the Statement of Claim relating to the cost of the suit.

Cost of the suit 4. The beginning point is to state that courts have an inherent jurisdiction to make orders on costs. That in exercising that inherent jurisdiction, courts have to accommodate special circumstances of the case while being guided by the ends of justice.Courts are called upon in the exercise of the inherent jurisdiction to consider issues such as: Public interest

Motivation and conduct of parties prior to, during and subsequent to the actual process of litigation.

5. In most situations, the award of costs is more direct as costs are expected to follow events. That the party who called forth the events by instituting a suit would in most cases be condemned to pay costs if they fail, or in the alternative if they succeed, the respondent will be condemned to pay costs.

6. In this particular case, we cannot say that the Claimant has won and the Respondent has lost the case or the reverse. It is justice that has won to help with judicious determination of this matter. It is also imperative to state for the record that we find no problem with this suit; it has not been filed prematurely and this tribunal also has jurisdiction to entertain the suit. This suit was brought after the claimant failed to service the loan as agreed monthly and consistently. Part E of the loan application form that is titled OTHER TERMS AND CONDITIONS TO THE LOAN, specifically (d) state that:“in terms of normal Sacco practices, the facility can be recalled for immediate settlement while repayment period can be changed without prior notice.”

7. Be as it may, we have considered all pertinent issues relating to cost of the suit, our earlier intervention in relation to this case, conduct of the parties and public interest and it is our decision that parties shall bear their costs.

Final Ordersi. Parties of bear their own costs.

RULING SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 27TH DAY OF JUNE, 2024. ...........................HON. B. KIMEMIACHAIRPERSON...........................HON. J. MWATSAMADEPUTY CHAIRPERSON...........................HON. BEATRICE SAWEMEMBER...........................HON. FRIDAH LOTUIYAMEMBER...........................HON. PHILIP GICHUKIMEMBER...........................HON. MICHAEL CHESIKAWMEMBER...........................HON. PAUL AOLMEMBERTribunal Clerk JonahMburu advocate holding brief for Opiyo advocate for the ClaimantIrene Wairimu – No appearanceMatter deferred to 4. 7.2024. ...........................HON. J. MWATSAMADEPUTY CHAIRPERSON