PCEA Ruiru Sacco Ltd v Murigi [2023] KECPT 806 (KLR)

PCEA Ruiru Sacco Ltd v Murigi (Tribunal Case 372/ E177 of 2021) [2023] KECPT 806 (KLR) (28 September 2023) (Judgment)

Neutral citation: [2023] KECPT 806 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 372/ E177 of 2021

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

September 28, 2023

Between

PCEA Ruiru Sacco Ltd

Claimant

and

John Macharia Murigi

Respondent

Judgment

1. The matter for determination was brought via a Statement of Claim dated 30. 08. 2021 filed on the same date. In the Statement, the Claimant, a Sacco Society, averred to have advanced a loan of Kshs. 296,100/=; with a 12% per annum and Kshs.111,228/= monthly installments, to the Respondent, a member of the Respondent. They prayed for the following:a.Kshs. 232,530/=b.Interest at 12% per annum on the above amount from 30th April until full repayment.c.Cost of the suit.

2. The Claimant also filed a Witness Statement dated 30. 08. 2021, of Edward Ngarega Gacheru,the Claimant’s Treasurer, reiterating the Statement of Claim. Attached was a List of Documents including; Payment Voucher, Statement of Accounts and a Demand Letter dated 5th May 2021.

3. Written submissions dated 5. 09. 2023 filed by the Claimant, indicated that an Interlocutory Judgement had been issued on 29. 11. 2022 and directions for the matter to be fixed for Formal Proof due to the amount of interest charged. In the submissions, the Claimant avers that the principal amount loaned to the Respondent was Kshs 288,694/=, the date when the loan became non-performing was 22. 08. 2016, when the principal sum was Kshs 137,530/=; and the interest on the loan after was Kshs. 96,970/= to the date of filing the suit and there were no other expenses charged. There was an attempt to recover the outstanding amount through a demand letter dated 5. 05. 2021.

4. They also file a request for judgement dated 24. 10. 2022.

5. The Respondent did not enter appearance or file a Defence.

Issues for determination 1. Whether the Respondent is indebted to the Claimant. 6. A Loan Application form marked MN4 produced by the Claimant, indicates in Section G, that an amount of Ksh 296,100 was approved from the Kshs. 300,000 applied by the Claimant. A loan issuing payment voucher dated 29. 04. 2021 and the Account Statement dated 29. 04. 2021, on 19. 03. 2015 a normal loan of Kshs 288,694 was debited to the Respondent’s account.

7. With this, it is evident that in deed a loan of Kshs. 288,694 was advanced to the Respondent.

2. To what extent is the respondent indebted 8. The Claimant admits that the respondent did service the loan leaving a deficit of Kshs 137,530, when he defaulted on 22. 08. 2016 as per the Account Statement dated 29. 04. 2021.

9. The Claimant charged interest on the outstanding amount since the date of the default to the date of filing of the suit which amounts to 5 years; and since interest was 12% per annum, and there were no other charges on the loan as indicated in the Claimant’s written submissions, the interest amounts to Kshs 82,518. An amount that is does not contravene the In Duplum Rule under Section 44 of the Banking Act. The rule limits interest accrual to equal the principal amount outstanding when a loan becomes non-performing. The amount owed by the respondent becomes Kshs 232,530/=

Upshot 10. The Claimant has proved the claim on a balance of probabilities and judgment is accordingly entered for Kshs. 232,530/= as prayed in the claim plus costs and interest in the claim at Tribunal rates from the date of filing claim.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 28TH DAY OF SEPTEMBER, 2023. HON. BEATRICE KIMEMIA CHAIRPERSON SIGNED 28. 9.2023HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 28. 9.2023HON. BEATRICE SAWE MEMBER SIGNED 28. 9.2023HON. FRIDAH LOTUIYA MEMBER SIGNED 28. 9.2023HON. PHILIP GICHUKI MEMBER SIGNED 28. 9.2023HON. MICHAEL CHESIKAW MEMBER SIGNED 28. 9.2023HON. PAUL AOL MEMBER SIGNED 28. 9.2023TRIBUNAL CLERK JEMIMAHHON. BEATRICE KIMEMIA CHAIRPERSON SIGNED 28. 9.2023